Govt. getting ready for the budget

Another tax was introduced for the import of luxury vehicles at Tuesday’s Cabinet meeting

In compliance with conditions stipulated by the International Monetary Fund (IMF), the government decided to formulate the budget targeting the reduction of deficit to 4.5 percent. For that to be achieved, the Government will have to raise revenue and to cut down expenditure.  

The Value Added Tax (Amendment) Bill was presented in the House to be enacted. It is also to raise revenue. Alongside, the prices of cigarettes were increased by seven rupees per stick as a revenue generating measure. The government is planning to collect Rs.22 billion by way of this price hike announced ahead of the budget.  

Another tax was introduced for the import of luxury vehicles at Tuesday’s Cabinet meeting. State Minister of Development Strategies and International Trade Sujeewa Senasinghe asked for the implementation of it without any retrospective effect. The Cabinet discussed in great detail the need to raise tax revenue.  

JO perturbed over SAARC move

Sri Lanka and Pakistan have been time-tested, all weather friends. But, for the first time, relationship seems to have strained because of Sri Lanka’s announcement not to attend 
the SAARC summit

Sri Lanka and Pakistan have been time-tested, all weather friends. But, for the first time, relationship seems to have strained because of Sri Lanka’s announcement not to attend the SAARC summit, which was scheduled to be conducted in Islamabad. Uncertainty loomed over the possibility of conducting the event this time because of turmoil between India and Pakistan. India decided to stay away after the development of tension.   

Sri Lanka also announced its decision even before Pakistan informed of the cancellation of the event.  Diplomatic sources said Pakistan was upset over Sri Lanka’s move. The Joint Opposition, in the meantime, made a statement critical of the move by the Foreign Affairs Ministry. Former External Affairs Minister Prof. G.L. Peiris issued a statement, and said it was a diplomatic faux pas to make such an announcement as Islamabad was anyway going to cancel the event due to the prevailing unhealthy atmosphere.  

He recalled how Pakistan supported Sri Lanka in the proceedings of the United Nations Human Rights Council (UNHRC) during the time of former President Mahinda Rajapaksa.  

Pakistan also lobbied the support of Islamic countries in favour of Sri Lanka against the resolutions moved by the United States at that time.  

Navin struggles to keep  Fund

Another tax was introduced for the import of luxury vehicles at Tuesday’s Cabinet meeting

Plantation Minister Navin Dissanayake, once again raised his objection against the move, to transfer funds accumulated by way of a tax called Cess at Sri Lanka Tea Board to the Treasury. An open confrontation took place between him and the Finance Minister earlier on the move. Minister Dissanayake, again, renewed his request. The government deferred it to be considered later.  

Two political protest marches took place in recent times- one organized by the Joint Opposition from Kandy to Colombo and the other by the Tamil parties under the leadership of Northern Province Chief Minister C.V. Wigneswaran in Jaffna. The contexts in which these marches took place are different, and therefore the responses evoked also varied. 

The northern one, the more recent protest march calling for Tamils to rise up, has created an uproar in the country with political leaders of all hues responding to it, and even asking for the arrest of Mr. Wigneswaran. Be that as it may, the incident now appears to be a result of a wedge between the leadership of the Tamil National Alliance (TNA) and Mr. Wigneswaran, backed by a few other parties.  
The release of lands occupied by the military, the release of detainees held under the Prevention of Terrorism Act (PTA), the resettlement of displaced persons and the termination of constructing Buddhist Vihares in the Northern Province and a political solution are among the major demands of the Tamil political parties that organised this march recently.   

On the surface of it, it appeared that the Chief Minister tried to apply pressure on the Government to resolve these issues with a time bound action plan. It was interpreted as an action with an extremist undertone.   

So, it stirred the hornet’s nest, eventually compelling the Chief Minister himself to clarify on what he meant through his remarks.  

However, beneath the surface, there seems to be some other factors that propelled the Chief Minister to go for such action at this juncture.  

Already, the Government, led by President Maitripala Sirisena and Prime Minister Ranil Wickremesinghe, has taken initiatives in addressing these issues in a phased 
out manner.   

The military occupied lands have already been returned to their rightful owners to a certain extent. Likewise, some PTA detainees have been reunited with society through a rehabilitation process at the request of the TNA.   

Steps have been taken to resettle displaced people. The Constitution making process is underway with the hope of working out a power sharing arrangement with the periphery. But, the Chief Minister and the group are not satisfied with the progress.  

The TNA which is the Main Opposition in Parliament is in touch with the Government on the issues of their concern.   

The TNA leadership is taking a sober approach and adopting soft measures in dealing with the Government for the resolution of issues concerned.   

This carefully calculated approach does not seem to be appealing to some Tamil parties self and the Chief Minister. That attitude might have prompted them to revolt against the TNA leaders. They seek speedy solutions to the grievances of Tamil people as highlighted by them.  

In the light of it, the protest march has been timed and intended to exert pressure not only on the government but also on the TNA leadership soft-pedaling with the government.  

 
Moreover, it is a result of a brewing crisis within the TNA. Mr. Wigneswaran, though in talking terms with TNA leader R. Sampanthan, are harbouring differences. Actually, Mr. Wigneswaran, a retired Supreme Court judge, was nominated as the Chief Minister Candidate of the TNA at that time by the present leadership despite objections both within and outside.   

TNA Deputy Leader Mavai Senathirajah, who eyed the candidature, is reported to have opposed the nomination of Mr. Wigneswaran. He even broke down in tears and said though he was against the move, he would not revolt for the sake of unity of the TNA.  

Upon election to office as the Chief Minister, differences emerged between him and Mr. Sampanthan. Alongside, internal rivalry is openly out between Mr. Wigneswaran and TNA MP for the Jaffna district M.A. Sumanthiran who is a close confidante of Mr. Sampanthan.  

The present political climax appears to be , on the other hand, a strategy by the Chief Minister to gain the upper hand in northern politics to face the next provincial council election due only after another two and half years unless called for prematurely.  

The TNA is an amalgam of four parties. Ilankai Tamil Arasu Katchchi (ITAK) is the core party to which Mr. Sampanthan and Mr. Sumanthiran belong to.   

People’s Liberation Organisation of Tamil Eelam (PLOTE), Eelam People’s Revolutionary Liberation Front (EPRLFP) and Tamil Eelam Liberation Organization (TELO) are the other parties. ITAK boycotted the protest march whereas the other parties participated in it.   

Hence, it is indicative of the Tamil parties aligning with each other with Mr. Wigneswaran behind against the ITAK at this juncture.  

ITAK to go alone at LG Polls
It is learnt from sources in the north that the ITAK is contemplating to contest the next local authorities’ election in its own. Against this backdrop, other parties may also opt for alternatives, and the current development is reflective of this trend in northern politics. It is too early to say whether the trend will snowball into a split within the TNA ahead of future elections. In the past too, differences emerged among the TNA allies, but for electoral purposes, they remained united.  

Sumanthiran perturbed over Finance Ministry Officials’ absence
Ahead of the next budget, the Public Finance Committee, a parliamentary body headed by TNA MP M.A. Sumanthiran and set up under the new Government, met on Monday for a progress review of implementation of the previous budgetary provisions.  

The committee met at 10.00 a.m, and the whole day had been assigned for the purpose. However, it had to be adjourned only after one hour because the key officials did not turn up.   

Mr. Sumanthiran, backed by other members, took it as an affront to the Parliamentary body, and wrote to Finance Minister Ravi Karunanayake and copied the letter to President Maitripala Sirisena, Prime Minister Ranil Wickremesinghe and Speaker Karu Jayasuriya.  

“We set aside the whole day for this, but we had to adjourn it. We copied the letter the President, the Prime Minister and the Speaker,” he said.  

The committee considered it an act of defiance to Parliamentary authorities. The committee intended to review the progress of implementing proposals outlined in the previous budget. Only two officials turned up for the meeting, but they were not in a position to answer questions raised by the Committee.