Sri Lanka will not have a domestic debt haircut, assured State Minister of Finance Shehan Semasinghe at the NextGen SL and German Embassy organized budget seminar on Friday.
He said that the government has made steady progress with the IMF negotiations and they have also received positive feedback on debt restructuring talks held specially with two major creditors to Sri Lanka India and China and also the Paris Club.
“They have all indicated that they will not STOP supporting the Sri Lankan debt restructuring process. The government has never spoken about non-payment of domestic debt. Hence we are not and will not look at restructuring/phasing out local debt repayments,” he stressed.
The Minister said that several prudent economic fundamentals are being deployed towards economic stabilization and then to raise the economic growth rate to around 7 to 8% in the next two years.
He said that though some of the tax proposals may not be praiseworthy they had to be taken since it was urgently needed to increase government revenue. “I am pleased to say that our revenue target for 2022 is 95% on target. In 2021 government revenue was Rs. 1,155 billion and up to October 2022 we have achieved Rs. 1586 billion.”
The Minister also said that two special Acts the new Public Finance Act and Anti-Corruption bill would be introduced next year which will help to safeguards against acts of corruption and malpractice in the future. As the Government, is keen to push through the reforms and make the hard decisions.
Channel more funds to transport sector – Ranawaka
Former Energy Minister and present MP, Patali Champika Ranawaka said that he does not approve the large budget allocation of Rs. 94 billion or road development and said that it should be shifted towards improvement and digitalization of public transport and buses and railway sectors.
Government must reduce the construction of additional highways and utilize part of that money to improve railway road network. Tri Forces support too should be sought in this regard.
He said that today public buses that ply on the road have reduced from 28,000 to 23,000 while private School van too have reduced from 48,000 to 43,000.
He identified lack of spare parts as one of the main issues for this.Today use of public transport is 52% and this should be increased to 70%. a common smart card should be introduced to travel not only in buses and rail but also in three wheelers.”
Stamping the fact that the budget allocation in defense is too high he said he said focus should be drawn to convert the Sri Lankan forces to a Smart Army as the future of terrorism will not come from Bombs but by drones and cyber-attacks.
Ranawaka also said that he reduced the losses of the CEB by Rs. 45 billion and urgent steps should be taken to pay back dues of solar energy suppliers.
“Mein Schiff 5” cruiser with 2,030 passengers to call over Colombo and H’tota Ports The majority of passengers being Europeans and 945 crew members will make its maiden call to Sri Lanka on November 29. For the first time “Mein Schiff 5” will call at Colombo Prot and Hambantota Port on November 29 and 30. It will create history by being the first and largest passenger ship from Europe to call and stay overnight at the HIP and the East container terminal.
Due to the ship being too large it cannot berth at Colombo Port passenger terminal. This is the second back to back passenger cruise to call over to Sri Lanka after Norwegian ship Vikingmas carrying 700 tourists and 450 crew arrived at Colombo Port last week marking herself as the first cruise ship to call Sri Lanka post-COVID.
Digitalize State entities – Dr. Godahewa
Former Minister and Sri Lanka Tourist Board, and present MP, Dr. Nalaka Godahewa said that the best way to gradually reduce government corruption is to digitalize all state institutions.
This will ensure transparency and corruption could be reduced to a great extent and can take the country towards ‘zero corruption.”
He also said that though tourism in among the two three foreign exchange earner it was sad to note that no budget allocation was given to the sector.
He said that SME owners of hotels and export companies should be taken from of charge to attend international exhibitions by cutting down the number of officials from Tourist Board and Export Development Board.
Asked by Daily News Business on his views on restructuring some government entities he said he was against privatization but was for Public Private Partnerships.
Urgent steps should be taken to increase agriculture exports which is at around USD. 2.5 billion as against Netherlands which is over USD 45 billon.
Woo younger Diaspora back – Eran
Sri Lanka has one of the largest ‘second generation diaspora’ members in the world and the government should try to woo them to come back to Sri Lanka said former Minister and present MP, Eran Wickramaratne.
“The government must look at the second generation of Sri Lankan diaspora (this will amount several millions) and offer them ‘Sri Lankan Residency’ and invite them back to the country,” he said.
They will also be very keen in investing in Sri Lanka.
Commenting on the tax reforms he said that taxes should be paid to increase the government revenue and government must re look at imposing un due taxes for exports and other smiler thrust sectors of the economy.
He said that the export tax in Bangladesh is 14$ and in Vietnam new exporters are given three years zero tax for exports. “But in Sri Lanka it has been increased from 14% to 30%.
He also said opined that the allocation of the total budget to defense was 10% and this is not acceptable. “Even in India where there is a border dispute with Pakistan their budget in 10% and Australia and New Zealand and most of other Asian countries defense budget is between 3% to 6%.