Peace for the World

Peace for the World
First democratic leader of Justice the Godfather of the Sri Lankan Tamil Struggle: Honourable Samuel James Veluppillai Chelvanayakam

Sunday, July 21, 2013

July – Many Reasons To Keep Calling It “Bloody & Black”

By Kusal Perera -July 21, 2013 
Kusal Perara
Black July 83 - A Tamil boy stripped naked and later beaten to death by Sinhala youth in Boralla bustation | Photo - Chandraguptha Amarasingha
Waking up to a misty, cold morning on Monday 25th July, I listened to the day’s first “Thevava” (තේවාව) of Dalada Maligawa, the pinnacle of Buddhism in this “Land of Gauthama Buddha”. 
Colombo TelegraphLooking down at the Kandy town from the front garden space of “Satyodaya” on Pushpadana hillock, the town was seen just breaking out of its long night slumber. The morning breeze carried the drum beats of the Thevava across the silent town waking up men, women and children into this new day, that was to be etched in the “bloodiest black” possible, in post independent history of Ceylon and Sri Lanka thereafter.
The previous day, Sunday 24 July, I was attending a meeting of workers in Kandy, mostly State sector, who had struck work 03 years ago, between 17 and 22 July 1980. The Jayewardene government crushed the ’80 July strike with no mercy. Over 47,000 workers were thrown out of their jobs. July was turning black year after year since the workers’ strike, with reports of a striker or two committing suicide, while others were desperately trying to crawl back to life.
The word “Thevava” did not mean much to me then. But lately I found it is originally a Tamil word and the whole ritual had been borrowed by Hinduism, as practised in the Hindu kovils. Adopted in a Buddhist holy palace, there obviously had been a few changes to this ritual inside Dalada Maligawa, perhaps over the past few centuries. “Panikkiyas” (guess this is also a Tamil word) who perform at the Thevava with drums and flutes, are also of South Indian descent, now wholly “Sinhalised”.                    Read More


Talks of EU election monitors is confusing and misleading the public - Keerthi Tennakoon


caffe logo 1Campaign for Free and Fair Elections (CaFFE) is dismayed at the confusion regarding the ongoing discussion on foreign election observers.
daily mirror 1





CaFFE Executive Director Keerthi Tennakoon said that there is no possibility of the EU sending a monitoring mission for the upcoming Provincial Elections according to direct communications CaFFE had with EU delegation. This was corroborated by the statement of Jean Lambert, Chair of the European Parliament Delegation for Relations with the Countries of South Asia at a press briefing yesterday (July 19.)

However there are still media reports stating that EU monitors might observe the elections, confusing the public and misleading the stakeholders including the political parties and candidates.

There is still a possibility of the Commonwealth Secretariat sending a team of monitors/experts. However the election commissioner or the Government of Sri Lanka needs to send a formal invitation in the coming week if the Commonwealth Secretariat is able to prepare monitors and make the necessary logistical arrangements. If they are not invited immediately they will not be here for an adequate time necessary to understand the ground realities.

In addition the most reputed and experienced election monitor of all, the UN needs an invitation 3 months prior to the election. Therefore that avenue closed sometime back.

Deploying foreign observers at the last moment, where they do not understand the context in which the elections are held, often leads to confusion and embarrassment. For example Asian election monitors who were deployed last minuet for the 2008 Eastern Provincial Council elections arrived at conclusions that completely contradicted the observations made by local election monitors, media and political parties. CaFFE is concerned that the government is attempting to repeat history by delaying the sending of invitations.

CaFFE Executive Director Keerthi Tennakoon is issuing this press statement to clarify the confusion regarding the issue and to depict the ground realities of having experienced and reputed election observers, which meet real international standards. We believe that the possibility of the presence of international election monitors must contribute to a free and fair election and must not become just a talk show to confuse and distract relevant stakeholders.

Rupee plunges, driving prices up

The Sundaytimes Sri Lanka
Sunday, July 21, 2013
A continuously weakening rupee to the US dollar may lead to a price spiral in essential food items, the trade warned yesterday.
However, Central Bank Governor Ajith Nivard Cabraal claimed on the telephone from Washington where he is on an official visit “it was not really right to say so”.
“With the increase of the dollar rate, we have to pay high prices for goods at the time of import,” said K. Palaniyandan, President of the Colombo Traders’ Association. “This applies even to commodities for which we opened Letters of Credit some weeks ago. At the time of delivery, we have to pay at current rates.”
Among the imported food items are onions, dhal, sugar, rice, tinned fish and milk powder. A wide variety of other goods, including hardware, are also likely to go up in price. “Although our costs have gone up, we cannot immediately increase prices because the market is already flooded with imports,” Mr. Palaniyandan said. “We are still keeping about a rupee or two profit margins in the wholesale market.”
On Friday, the buying price of the dollar was Rs. 129.95 and selling price 133.15 at close. The rupee has fallen sharply since June 7, when a rise in US treasury yields prompted foreign investors to pull out of Sri Lanka’s treasury bond market. Currency dealers expect the rupee to keep on depreciating unless the Central Bank steps in with tightening measures. But Governor Cabraal said they would not intervene.
“It’s not really right to say prices will go up,” he said in a telephone call from Washington. “Even if the rupee has slightly depreciated against the dollar by about  3 per cent, it has gained substantially against the sterling pound, the yen, the Indian rupee and the Australian dollar.”
Currency dealers have said that one of the main reasons for the rupee’s fall is high demand for dollars from importers. But Mr. Cabraal said some traders were saying this “to get a devaluation.” “Trade also takes place from Japan and India and there has been appreciation of the rupee against both those currencies,” Mr. Cabraal explained.
He shot down fears that food items would become more expensive. “The main food items are grown here. Only a few items like apples and grapes are imported. Also, sugar, but sugar prices worldwide have dropped.”
“Inflation won’t get adjusted,” he continued. “There are 373 items in the (Colombo Consumers Price Index) basket. A few will go up in price but a few will go down. The overall impact will be neutral. If it is neutral, there is no need to intervene.”
Meanwhile, vehicle importers said their prices were also set to rise. “We are worried because, even though we opened LCs some time ago, we have to pay much more to take delivery of the vehicles,” said Dhammika Peiris, Secretary of the Vehicle Importers’ Association of Sri Lanka. “Added to this, the vehicle market is also slow now.”
Sampath Merenchige, President of the Vehicle Importers’ Association of Lanka, said sales were regular at present but agreed that prices would increase.
In June, Mr. Cabraal was quoted as saying that a weakness in Sri Lanka’s rupee was a “logical adjustment”. Mr. Cabraal said yesterday he could not predict whether the rupee would continue to weaken against the dollar. “We don’t know,” he asserted. “Worldwide currency markets are so volatile, nobody can predict what will take place.”
Five held over kidnapping, ransom attempt
[ Sunday, 21 July 2013, 04:46.58 AM GMT +05:30 ]
Three army soldiers and one army deserter are said to be among five men arrested under suspicion of demanding a ransom of Rs 500,000 after kidnapping and threatening an individual. 
The suspects were arrested near the Makola Gale Temple after they abducted a person from Natuduwa, Enderamulla in an attempt to collect ransom money.
Sapugaskanda Police said the suspects are being held and interrogated under detention orders.

UNP POLITICO ACCUSED IN NOSE-BITING INCIDENT AT WEDDING


July 21, 2013 
An electoral organizer of the United National Party has reportedly assaulted and bitten the nose of an individual during a wedding reception in Attanagalla this evening.

The assault victim, said to be an employee of a state media organization, has been admitted to the Wathupitiwala Hospital.

Wathupitiwala Hospital Police said a complaint has been lodged alleging that UNP electoral organizer Thushara Hemachandra had carried out the attack and had also proceeded to bite the victim’s nose.

The Police Spokesman’s Officer confirmed that such an incident was reported between 4.00pm-4.35pm today (21).

Another UNP politician, MP Dunesh Gankanda was arrested over a similar incident in May last year, after he was accused of assaulting and biting the nose of a businessman at a night club in Kollupitiya. 

G-20 backs new tax rules for big firms

g20 george osborne
Finance ministers from the G-20, including the U.K.'s George Osborne, backed a big change in the way multinational companies are taxed.
LONDON (CNNMoney)-  @MarkThompsonCNN July 19, 2013

CNNMoneyFor the first time in decades, the world's biggest powers look ready to close loopholes that big companies exploit to pay little or no tax.

The Group of 20 leading developed and emerging economies gave its support Friday to an action plan drafted by the Organization for Economic Co-operation and Development that will be translated into specific measures over the next two years.
"International tax rules, many of them dating from the 1920s, ensure that businesses don't pay taxes in two countries -- double taxation," OECD Secretary General Angel Gurria said in a statement. "This is laudable, but unfortunately these rules are now being abused to permit double non-taxation."
Revelations that multinationals such as Apple(AAPLFortune 500)Google (GOOGFortune 500) and Amazon (AMZNFortune 500) have been paying very little, if any, tax in countries where they have substantial businesses has led to a storm of protest.
A U.K. parliamentary committee called last month for a full investigation into Google's tax affairs, following a scathing report that also criticized Amazon and Starbucks (SBUX,Fortune 500). Apple has been grilled by lawmakers in Washington.
Governments have pushed the issue up the global agenda as they struggle with falling revenue in the wake of the financial crisis, and find it ever harder to introduce more spending cuts and tax increases that weigh heavily on local firms and households.
Last month, G-8 leaders pledged to take action, a commitment that was strengthened Friday by the adoption of the OECD plan by G-20 finance ministers meeting in Moscow. It will be discussed by G-20 leaders in September.
Big companies say they operate within the law as it stands, and argue that current rules work in the vast majority of cases. But some organizations representing smaller firms have welcomed the bid to create new global standards.
"The government should act with international partners to tackle the issue of cross-border corporate tax avoidance," said Steve Radley, director of policy at the EEF, which represents U.K. manufacturers. "EEF welcomes today's report and urges the U.K. and the G-20 generally to respond positively to its central recommendations."
The 15-point action plan will tackle the practice of shifting profits across borders to take advantage of lower taxes. Tax systems haven't kept pace with how companies work in the digital economy and are failing to reflect how profits are made on intangible assets or data.
The OECD said it was aiming to close loopholes that allow companies to "disappear" income for tax purposes by using multiple deductions for the same expense. It will also come up with rules to make it harder for companies to hide profits in offshore subsidiaries.To top of page

Untangling the Golden Key web


Editorial-


Given the thousands who held deposits in the failed Golden Key credit card company, and the size of its deposit fund of many billion rupees, it is no surprise that the state of play in the protracted litigation and other efforts to sort the mess remains in the news. Chief Justice Mohan Pieris, presiding over a three-judge bench hearing a fundamental rights action filed by some depositors, was reported to have remarked last week that the depositors should be grateful for the efforts of the courts to formulate a scheme to give them some redress especially in the context of the fact that no taxes on the interest earned on the Rs. 26 billion deposit fund had been paid.

It is no secret that thousands of gullible investors, attracted by the unrealistically high interest rates offered and paid by Golden Key, paid no taxes on the interest payments they received when the going was good. The company was not an authorized deposit taker regulated by the Central Bank the way it regulates licensed commercial banks and other deposit takers like registered finance companies. The failed company accepted deposits as a consideration for the issue of credit cards and described what it was paying investors as ``rebates’’ rather than interest. Given that its operation was huge and that the nature of its business was common public knowledge, there was an obvious regulatory failure in that the concerned authority, that is the Central Bank, did not closely examine what was happening until the bubble burst.

The contention that the company did not come under the ambit of the existing laws is hardly an excuse for the Central Bank not taking an interest in the business. Wisdom has dawned after the collapse and the bank regularly publishes public notices listing the licensed deposit takers. Maybe such notices had been published earlier too, though less frequently, but those attracted by the way-above-market interest rates had clearly taken little notice of cautionary publications. Up to now nobody has authoritatively revealed how and why the collapse was triggered. Probably accurate market talk has it that a couple of very large withdrawals created a situation where a pyramid like scheme that seemed to have been borrowing from Peter to pay Paul was confronted with a cash crunch that made it impossible to meet its interest and repayment obligations. As the word got around, there was a natural run on deposits and the smelly stuff hit the fan.

Withholding taxes on interest and dividend income is a convenient method for the State to collect its dues on such earnings. In the case of interest income, declarations made to the deposit taker by the investor will determine what percentage of such earnings will be deducted and remitted to the Department of Inland Revenue. If the depositor is not liable to pay income tax with an income below a specified floor, based on a declaration he/she would make to the deposit taker, there is no deduction. The highest deduction currently made from those with relatively high incomes is eight percent, reduced from the 10 percent that was previously applied. Those with less income would pay lower rates on a sliding scale. Nobody likes to pay taxes they can avoid and it is quite obvious that many declarations that are made may not be true. Given that the Inland Revenue authorities do not dig into the truth or otherwise of such declarations, it would appear that the amount of taxes foregone is not worth the effort and expense of tracing them. As it is, the number of personal income tax files maintained by the department is much fewer than they should be judging by the affluent lifestyles very visible in the country. The strategy of broadening the tax base by reducing the rates does not appear to have worked in the way those who devised it wished.

In the case of Golden Key, hopefully the tax authorities have made sure that at least the large deposit holders have rendered unto Caesar the things that are Caesar’s. If not, it is imperative that assessment notices are served and dues recovered whoever the defaulters are and whatever their positions. Small depositors who have tried to meet an ever rising cost of living by seeking the high interest the company offered must be given any possible redress. There are those who berate them saying they greedily sought unrealistically high interest and must now pay the price of their avarice. While that may be true of the rich, such as those who are supposed to have withdrawn their hundreds of millions in the nick of time triggering the collapse, it would be too harsh a judgment on the small people who, quite apart from the interest foregone on their savings, are not expected to recover more than 40 percent of their investment. Given the interlinked companies of the business group of which Golden Key was a single unit, and the way in which funds raised by that company had been funneled into other group companies, untangling the web is obviously a gigantic task. Added to that is the fact that shareholders far removed from the scam would also have interests in group assets that cannot therefore be totally stripped to help meet obligations of the liable entity.

There are those who have lost money in Golden Key who feel aggrieved that the Central Bank bailed out previously failed finance companies like Mercantile Credit and HPT and their depositors were repaid. We are not aware whether this was done only with the resources of those companies themselves or at least partly with public funds. But these were regulated licensed deposit takers. In the case of Mercantile Credit, much of the losses incurred were during the management by state agencies and the previous owners have washed their hands of such losses. The Central Bank has the responsibility of ensuring the stability of the financial system and it did well in preventing a run on the banks, especially the connected Seylan Bank, after Golden Key’s debacle. This, of course would be of little consolation to those depositors who feel inequitably treated. However that be, it is clear that both the courts and the Central Bank are trying their best to enable whatever redress is possible. Hopefully this task would be completed sooner than later.

Activists discuss strategies of resistance at London event

[TamilNet, Saturday, 20 July 2013, 23:33 GMT]
TamilNetActivists involved with different contemporary political and social movements came together on Thursday at an event in London to discuss strategies of resistance in the 21st Century. Titled ‘Modern Day Protest’, the event was chaired Hugh Muir, columnist with the Guardian, and saw the panellists, with experience in different spheres and types of activism, engage in lively debate and sharing their views on the models of effective activism to be considered especially in the West. Eezham Tamil activist Gobi Sivanthan’s argument that non-violent direct action was a very effective strategy to be pursued in the West given the level of criminalization of activists and protests was taken up well by the participants. 

Mr. Sivanthan, an activist with the TCC-UK, talked about how different non-violent strategies were used by the Tamils in the UK to draw attention to the genocide that their brethren face in their occupied homeland.

Elaborating from personal experience, he also spoke of the need for campaigning among people as opposed to trusting establishments.

Dr. Nadine El-Enany, Lecturer in Law at Birbeck, University of London spoke about the importance of challenging the law. Talking about the corruption in the police system, she also explained how the state used convenient definitions of ‘violence’ and ‘non-violence’ to curb protests.

Madeline Carroll, campaign director of activist group 38 Degrees and Trenton Oldfield, activist working against inequality in British society, also spoke at the event.

Diaspora Factor And Northern Polls 

By Easwaran Rutnam

British Minister Alistair Burt, his wife and Suren Surendiran at the annual dinner and reception of the British Tamil Conservatives (BTC) in London last Sunday.
 The Sunday Leader
Sunday, July 21, 2013
The Tamil National Alliance (TNA) faced not one but two situations last week where there was much discord within the party on selecting suitable candidates ahead of the Northern Provincial Council elections.
Initially the debate was if former Supreme Court Judge C. V. Wigneswaran or TNA General Secretary Mavai Senathirajah is the most suitable candidate for the Chief Minister post.

Calls From Back Home: Telling the Stories of the War Diaspora
Sinthujan Varatharajah Tamil Guardian 20 July 2013


First published in The Aerogram on 17th July 2013. See here for original article. Text reproduced in full below. 


Photograph The Aerogram

When my Amma calls me on the telephone, she sometimes fills the distance that separates us by reading me her poetry and asking me for translations and opinions. She often wants me to translate her own writing from our shared mother tongue, Tamil, to German or English. This leads to inevitable debates on words, meanings, worlds and linguistic displacements. Many of her poetry and short stories center around themes on war, resistance, diaspora, feminism, her hometown Jaffna and her own beloved mother.

Heavy international pressure forced NPC election says GTF


article_image
by Shamindra Ferdinando- 
gtf
The UK headquartered Global Tamil Forum (GTF) yesterday declared that the 13th Amendment to the Constitution couldn’t be an interim or a final political solution to the Tamil national question.

GTF spokesperson Suren Surendiran told The Sunday Island that the grouping was very grateful to the government of India, the Tamil Nadu legislature, its Chief Minister as well as the Opposition for their stand that a just long term political solution had to be found.

Surendiran alleged that President Mahinda Rajapaksa would never have had called for Northern Provincial Council polls if not for heavy international pressure by way of two resolutions passed at the United Nations Human Rights Council (UNHRC) sessions in two consecutive years and a bit of arms twisting by the very powerful neighbor, India. The government should be ashamed that the international community had to intervene to ensure polls for recognized body in accordance with the Constitution, the GTF official said.

Surendiran said that President Rajapaksa had won the war but failed to win peace. He could be also credited for uniting the country but divided people, Surendiran asserted.

Throwing GTF’s weight behind the Tamil National Alliance (TNA), Surendiran asserted that there couldn’t have been a better person than former Supreme Court judge C.V. Wigneswaran to spearhead the northern campaign as the TNA’s chief ministerial candidate under the current political circumstances.

"Wigneswaran has the strength to take up the challenging task of being the first Chief Minister of the Northern Province. With his legal mind, his expertise of the constitutional and legal processes, his ability to articulate issues logically, his command of languages and the leadership qualities combined with the ability to mobilize people, Wigneswaran can provide the required leadership," he said.

Asked whether the Tamil community here as well as those living overseas were solidly behind the TNA’s endeavor, Surendiran said: "Some of those who could play a significant role remain aloof as they believe the entire process is a farce."

He said that it would be important to examine the circumstances under which President Rajapaksa declared elections for the Northern Provincial Council.

"The de-mining exercise has been successful to a large extent, the majority of the displaced had been resettled as defined by the government, most former LTTE cadres rehabilitated and pardoned to be part of the wider community, major Infrastructure development programmes initiated, the highest percentage investment compared to any part of Sri Lanka, the military helps local communities by help build roads, bridges etc…and the list is never ending as far as the government is concerned.

``With such a remarkable record as the President claims, under normal circumstances President Rajapaksa’s party or coalition partners should win an overwhelming majority in the forthcoming polls.

"However the reality will certainly be the opposite, if a true and fair election is conducted,’’ he said.

Surendiran pointed out that those now wanting to do away with the 13th Amendment have never voiced their concerns though Provincial Councils were in existence since 1988.

"Various provincial councils have had elections and have been functioning for many years in largely the Sinhala majority areas and since recently in the east as well, where the Tamils along with the Muslims are the majority. No one ever cared about what powers or which powers have been practically devolved and practiced in those provincial councils until, this decision to hold elections in the Tamil majority part of the island," he said.

"Even the Sinhala Buddhist religious leaders including the most respected prelates of the Asgiriya and Malwatte Chapters, some of the government ministers, coalition partners, powerful siblings of the President, some of the academia in the south, majority of the State media and large portion of the wider Sinhala Nation has raised fears and objections. "

Surendiran said that the government should explain its position as regards the sudden eruption of anti-13 Amendment protests as well as the decision to sustain a massive military presence of over 100,000 military personnel in the Northern Province alone though the war ended in May 2009.

Asked whether the GTF was only concerned about calls to do away with the 13th Amendment and heavy military presence in the Northern Province, he said the Tamil community was gravely concerned over handing over of large portions of state land in the Northern and Eastern Provinces to the Sinhalese, grabbing of private land owned by Tamil speaking people and building up Buddhist religious places though Sinhalese didn’t live there.

The GTF also alleged that the assertion that all parts of the country should be accessible for all people was nothing but a ruse to colonize the Northern and eastern parts of the country.

VIDEO: UNP WANTS RS.15,000 MINIMUM PAY HIKE FOR PUBLIC


VIDEO: UNP wants Rs.15,000 minimum pay hike for public

July 21, 2013 
The United National Party (UNP) today called on the government to provide the masses with a salary hike of at least Rs 15,000 in the upcoming budget and warned of an uprising similar to that which recently took place in several Middle Eastern nations if it failed to do so.   

UNP MP John Amaratunga stated that there is an issue pertaining to the none payment of salaries to employees of the Sri Lanka Transport Board (SLTB) and that strikes are held almost every day by workers at bus depots across the country because they have not been paid for several months.

He stated that MP Namal Rajapaksa had recently intervened in such a situation and provided SLTB bus depot workers with their wages.   

“Is Namal Rajapaksa going to visit all bus depots every day to resolve their salary issues? This is a joke,” he expressed. 

He inquired as to why the government is unable to pay salaries on time when the public is paying bus fares properly. 

He also claimed that the SLTB is deducting an amount from the salaries of its workers for the Employees’ Provident Fund (EPF) but it is not being deposited in the Central Bank account. “This is a great robbery.” 

Amaratunga stated that SLTB employees will not be able to receive their EPF money when they retire due to this.

He stated that the UNP, on behalf of all the working class people in the country, requests the government to provide the public with a minimum Rs 15,000 wage hike in the upcoming budget proposal.

He warned that a public uprising similar to that in the Middle East will take place in Sri Lanka, if the government fails to provide this salary increase. 

Our Pirapaharan

“…..he who erected
His own gallows was the one who least expected
To end up dead.”
La Fontaine (Selected Fables)
Vellupillai Pirapaharancould have been the saviour of his people. He could have won for the Tamils a federal 
Colombo Telegraphsolution, perhaps even a con-federacy. He could have, but didn’t, because that was not his goal. His goal wasHis own state; the Eelam he worked towards was not Tamil-speaking Eelam, Tamil Eelam or even Tiger Eelam; his goal was a Pirapaharan Eelam, a country where he was the state, the law and the religion.
That megalomanic quest ended in an apocalyptic devastation which consumed the Tamil people, the LTTE and, ultimately, Vellupillai Pirapaharan.
Post-victory, the Rajapaksas could have chartered a different path for Sri Lanka, towards democratic peace and humane development. They could have resolved the Tamil issue, strengthened religious-amity and created the political and socio-economic foundations of truly Lankan nation. They could have, but didn’t, because that is not what they want. They used the enormous political capital they gained by defeating the LTTE to transform Sri Lanka in to a familial oligarchy, because that was what they wanted.
Democracy is a shell, the judiciary and the bureaucracy subjugated, minorities disempowered and majority addicted to ethno-religious extremism because these are essential steps in the road towards Familial Rule and Dynastic Succession.                                           Read More  

Murky casino taxes stir controversy


Sri Lanka’s main opposition has slammed proposed tax breaks for casinos to be operated by James Packer’s Australia based Crown group and said the plans will be opposed in parliament.

cartoonSri Lanka’s investment promotions ministry published a preliminary notice on tax breaks for Lake Leisure Holdings, where Packer’s Crown group is expected to invest and another project by Colombo-based John Keells Holdings.

The notices appeared to show that different tax regimes will apply to the two projects.

"The regulations issued by gazette providing tax relief are not the same for the two companies," legislator Harsha de Silva from the opposition United National Party told reporters following a government notice on proposed tax breaks for the two projects.

"For John Keells the (income) tax relief is only for the hotel and other services and not for the casino. I commend the stand taken by John Keells for refusing to a tax free casino. I think that is bigger corporate social responsibility than anything else.

The proposals published under Sri Lanka’s strategic investment law for large projects have to be approved by the cabinet of ministers and presented to parliament.

The government notice specifically mentioned that no corporate income tax breaks will be given to profits from a casino if John Keells Holdings starts one, but made no mention of an existing 5 percent flat tax set by betting and gaming levy law for gaming revenues.

In the case of Lake Leisure Holdings, a firm where Packer is expected to invest, the betting and gaming levy would apply but there was no mention of corporate tax for casino profits, except for a blanket exemption for profits of the entire businesses.

The strategic investment law was changed this year to allow it to exempt a company from the betting and gaming levy.

But it is not clear yet whether the JKH’s planned casino will or will not pay the betting and gaming levy and that the casino in Packer’s project will only pay gaming levy. Packer’s partner Sri Lankan partner Ravi Wijeratne has said that he will shift his casino there.

The details are expected to be made known to parliament later. Specific information on the projects have been hard to come by though casino regulation law was presented to parliament as far back as 2010, where rules are expected to set for a licensing.

Sri Lanka’s Investment Promotion Minister Lakshman Abeywardene has said earlier that Sri Lanka could change the taxes later.

"The UNP does not say no to everything," de Silva said. "We all want a better future for the people of this country. If in the process the government has to give some tax concessions to some investors we can debate in it parliament.’’

De Silva said Sri Lanka had very high taxes on food and it was not equitable to give tax breaks to people who were making money ‘hand over fist’.

He said Macao made 43 billion dollars in gaming with a tax close to 40 percent of casino revenues. Macao however does not have corporate tax on casinos.

"Look at Singapore - 22 percent tax plus corporate income tax of 17 percent. Look at Philippines up to 27 percent tax and they introduced in April a 30 percent tax. Las Vegas has a 35 percent tax on casinos."

Taiwan is planning to start casinos with a 13 percent tax. Sri Lanka has proposed only a 5 percent tax on gaming revenues. (LBO)

Human Rights and Business in Sri Lanka: In conversation with Priyanga Hettiarachi

Screen Shot 2013-07-21 at 7.48.23 AM
21 Jul, 2013
GroundviewsPriyanga Hettiarachi is the director and founder of RightsBusiness, founded after Priyanga’s return to Sri Lanka after a number of years working in Australia, The Netherlands and England. Given Priyanga’s award-winning work and experience, we begin our conversation around why he chose to come back to Sri Lanka, post-war.
Given how loaded and contested a term human-rights is in Sri Lanka, Priyanga goes into how and why businesses in Sri Lanka are engaging with rights based processes and thinking. Priyanga notes that the concerns around human rights and large corporations, particularly multinational corporations, isn’t new, and goes into the history of how the United Nations and other bodies have sought to embrace business in human rights discourse and standards.
One of the instruments by the UN, Global Compact, is non-binding in nature, leading to the criticism that business say more than they really do to improve human rights, merely to be associated with the UN’s initiative. Priyanga addresses this point, thirteen years after it was launched in January 2000.
Flagging initiatives like Sri Lanka First and the Business for Peace Alliance, which were formed during the time of the Ceasefire Agreement in Sri Lanka but no longer exist, or exist in the same form that they began with, Priyanga addresses how much the leading businesses in Sri Lanka are aware of, and embrace human rights in their corporate culture, CSR as well as business processes, especially post-war. Priyanga notes that though some businesses are more progressive than others, there is room for improvement.
Peace through profit: Sri Lankan Perspectives on Corporate Social Responsibility, published in 2005, flagged what at the time a greater interest in human rights by Small and Medium Enterprises (SMEs) in the North and East compared to those in the South. Priyanga is asked whether this trend continues even post-war.
He then goes on to address the concern that a business, interested in and indeed, built around the generation of greater profit and value to its owners and shareholders, in embracing human rights, could end up with increased costs. This was a point also flagged in the first annual United Nations Forum on Business and Human Rights, held in December 2012, where Priyanga was present.
Priyanga looks the global marketplace, and how consumers in developed economies are increasingly demanding products and services that don’t violate human rights, plus the standards and guidelines that are coming about to ensure corporate compliance and certification in this regard. He also looks at how consumers anywhere in the world, along with competition, can be key drivers in pushing business to be more compliant with human rights norms and standards.
Given the vexed nature of the challenge, Priyanga goes into two key things a business can do to improve its human rights compliance and awareness – the development of a human rights policy and subjecting what he terms ‘sensitive operations’ to a human rights audit or review.
Given Priyanga’s award-winning work in Australia, he is asked for what he sees as the fundamental differences between businesses in Australia and those in Sri Lanka in embracing human rights, and how corporates here can learn from more developed models elsewhere in the world. Looking at the UK’s Trade and Investment Website, which notes that companies may be complicit in human rights abuses even where they are not the direct result of their own action, Priyanga looks at the real costs of non-compliance, and going about business as usual no matter what the human rights implications.
We end the conversation on whether what Priyanga encourages businesses to do is still a niche market of its own, or whether there is strong and growing interest amongst corporates, both locally and globally, in human rights.