• P’ment Ways & Means Comm. Chair Patali Champika Ranawaka singles out several govt. institutions over apathy in heeding directives, implementing recomms. 

The Parliamentary Committee on Ways and Means has recently conducted extensive investigations into the country's administrative and economic affairs, unveiling numerous findings and proposing several recommendations to pertinent institutions. The Committee has brought to light various irregularities and areas for improvement within the country's crucial revenue generating institutions such as the Inland Revenue Department (IRD), the Customs, and the Excise Department.

In an interview with The Daily Morning, the Committee's Chairperson, Opposition Parliamentarian and United Republic Front Leader Patali Champika Ranawaka delineated the Committee's core responsibilities, highlighted the key recommendations that they have made in the recent past, and lamented the apparent indifference displayed by relevant institutions towards implementing such. In his capacity as a Party Leader, Ranawaka also provided insights into the Party's vision, its strategies for the upcoming elections, and various other pertinent issues.

Following are excerpts of the interview:

How would you define the Ways and Means Committee?

There are several standing committees established by the Parliament, with the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE) being the oldest. The Committee on Public Finance (COPF) was established in 2015, and in 2022, three additional standing committees were introduced, including the Committee on Ways and Means. I am currently Chairing it. We are operational from March of last year (2023). We have already issued two reports.

What are its main duties and responsibilities?

The Committee's role and responsibilities can be categorised into three main areas. Firstly, it oversees the performance of key revenue generating agencies such as the IRD, the Customs, and the Excise Department, providing recommendations as necessary. This also includes examining Customs duties and trade agreements with foreign nations, assessing their effectiveness, and suggesting improvements. Secondly, the Committee monitors the implementation of social welfare programmes like the Samurdhi and Aswesuma. Thirdly, it identifies deficiencies in existing institutions and approaches related to disaster management, offering suitable recommendations for improvement.

How can it contribute to the country's economic progress?

We oversee the three primary revenue-generating agencies of the Government and have proposed numerous enhancements to their effectiveness and efficiency. Our interventions led to a substantial reduction in liquor related fraud, particularly the sale of illicit liquor. The resolution of the counterfeit liquor bottle sticker issue was also a result of our intervention. Additionally, we devised strategies to boost Customs revenue by imposing taxes on goods brought in illegally from foreign countries. We consistently advocate for increased revenue generation by the IRD. All these moves eventually strengthen the country's economy.

In summary, what recommendations have been proposed based on those findings?

Our inaugural report was released in November 2023, followed by our second report submitted last month (April). Rather than solely resorting to tax introductions and increases, Sri Lanka has ample opportunities to enhance its revenue situation. We've put forth some fundamental suggestions in this regard. Addressing the issue of tax evaders including businessmen, Sri Lanka has suffered losses exceeding Rs. 1 trillion in revenue. We've provided recommendations on steps to recover these losses. Furthermore, the country incurs an annual loss of $ 4 billion (b) due to mis-invoicing in imports and exports via ports and airports. Rectifying this loss could even alleviate Sri Lanka's foreign debt burden significantly. Regarding the Excise Department, we've proposed integrating Excise duty into an electronic system and introducing a new bottle sticker based mechanism. Additionally, we've advocated for the integration of various government institutions, including the Department of the Registration of Persons, the Department of Immigration and Emigration, the Registrar General's Department, and the Department of Motor Traffic (RMV), onto a unified electronic platform. We've also recommended transitioning all transactions to an electronic platform by establishing a unified payment interface (UPI) through LankaPay. This system would automate tax collection processes for various transactions, potentially doubling Sri Lanka's revenue. Furthermore, we've proposed the introduction of electronic national identity cards (NICs), passports, welfare cards, and an electronic Rupee, aimed at modernising and streamlining transactions in Sri Lanka.

What role does the Committee play in combating corruption and fraud?

When discussing corruption in our country, the common perception often revolves around politicians illegally profiting from Government contracts and procurements. However, the reality is that our entire society has been ensnared in a cycle of corruption. For instance, the big onions imported last April at a price of Rs. 212 per kilo were subsequently sold for Rs. 800 per kilo. This isn't solely the work of politicians. Any income other than what is mentioned in the salary slips of professionals such as engineers, doctors, lawyers, teachers, and lecturers is regulated. It is through that that massive corruption and irregularities take place. Everyone is complicit in exploiting one another. All members of society, including Government and private sector employees, Police officers, journalists, and politicians, are both perpetrators and victims of corrupt practices. However, it is often only politicians who bear the blame. In this regard, we advocate for the implementation of an electronic payment platform to track everyone's income and expenditures. This system would eliminate opportunities for underhand dealings and effectively curb corruption and fraud. With such a system in place, the country could transition to corruption free transactions within a span of six months.

What level of support is received from government bodies and the public in carrying out the Committee's tasks?

Certain Government institutions have shown reluctance to heed our directions. For instance, the Ministry of Finance, Economic Stabilisation, and National Policies has displayed minimal interest in implementing our recommendations. Similarly, the IRD has only provided us with tax identification numbers (TIN) of defaulters but is yet to furnish the names of such individuals. Despite our recommendation to suspend the accounts of these defaulters and collect outstanding arrears, no action has been taken thus far. Furthermore, banks have not shared the list of defaulters with us. Although we advised the Excise Department to revoke the licences of liquor manufacturers evading tax payments, we have observed the inadequate implementation of this directive. On the other hand, institutions like the Customs have diligently implemented our recommendations and shown significant progress. We receive substantial support from the public, with initial suggestions regarding the electronic Rupee originating from common citizens. Additionally, people have urged us to guide the relevant institutions in establishing separate platforms for the importation of essential food items such as potatoes and onions, as well as other commodities like fertiliser, coal, and fuel.

What impact does delayed action against politicians and government officials implicated in financial crimes have on the country's economic growth?

The Government anticipates generating an additional income of Rs. 600 billion from the value added tax (VAT) hike, yet, there are businessmen who owe approximately Rs. 1 trillion in unpaid taxes. However, the Government has not taken decisive action to recover this amount. Instead of holding accountable those responsible, the burden falls disproportionately on the common man. This disparity represents a significant injustice in the country.

How do you assess the current economic climate?

At present, our country experiences a temporary economic respite. However, significant relief can be achieved upon restructuring foreign debt, yet the Government has not taken adequate steps in this direction. Without requisite measures by next month (June), the country will go towards a crisis again.

What are your thoughts on the effectiveness of Government subsidy programmes in empowering the populace?

We see only a distribution of money through subsidy programmes. They are not programmes that can create economic revival. Those programmes have been used for political purposes for a long time. We have suggested that instead of that situation, such programmes should be planned and implemented in a way that boosts the local economy. For example, we have recommended giving lunch to school children and directing the people to produce the necessary commodities including vegetables and fruits within the country.

As a leader of a political movement, what fundamental initiatives would you introduce for the economic and social advancement of the country if your Party were to come into power?

Under a Government led by us, we aim to implement an artificial intelligence (AI) based platform to curb mis-invoicing at the Customs, within six months. Additionally, we intend to establish an electronic system for the issuance of all Government agency licences. Our objective is to double the country's revenue, a goal that we believe is achievable. Furthermore, we plan to boost the digital services sector to generate foreign currency. In terms of social development, we emphasise the importance of prioritising education and healthcare. While we don’t intend to alter the policies regarding State based and free education, we seek to create a conducive environment for individuals to complete their degree by the age of 21, having taken the General Certificate of Education Ordinary Level Examination at the age of 14-years.

What do you think should be the key issues that voters should consider going into a Presidential Poll?

Voters must recognise the futility of levying accusations via social media platforms or other channels, and instead exercise their voting decisions properly. All Presidents including former President Gotabaya Rajapaksa ascended to power through electoral processes, not military coups, so, the people have to be careful in casting their vote. Moreover, media engagements sometimes align with particular political agendas, potentially misleading the populace. Hence, it is imperative for individuals to critically evaluate the competencies of public figures showcased in the media and make informed decisions accordingly.

How will your Party align with others this time around?

We recently unveiled a comprehensive initiative titled a ‘United Step for the Country’ to all political factions, excluding those deemed responsible for the economic crisis. Our invitation extended to all other parties with the objective of fostering a democratic alliance centred round this programme. With such a coalition, we aspire to nominate candidates for forthcoming Elections, including the Presidential and Parliamentary elections.

How do you define Sinhala nationalism now?

During the past few years, Sinhala nationalism was manipulated by a group of opportunists who exploited it for their own gain. They tarnished the image of Buddhism and it led to a decline in the respect for Buddhist monks. This misuse of nationalist sentiments has led to disillusionment among many, with thousands of Buddhist monks leaving their robes annually as they are no longer respected by the people. Those who claim to represent Buddhists have been discredited. Hence, it's imperative to rescue this nationalist movement from such factions, particularly, those who facilitated Rajapaksa's ascent to power. They have no moral authority to champion national sovereignty. Their attempts to exploit nationalism for political gain must be rejected. I don't think that people will be swayed by such groups' tactics again. Moving forward, we must work towards a unified, inclusive national movement that respects all cultural identities. The current crisis affects all Sri Lankans regardless of ethnicity or religion, and our priority should be to address these challenges collectively for the greater good of the nation.

What does your Party think of the national ethnic issue now and the solutions for it?

Many aspects of the national ethnic issues have been resolved by now. Language and administrative matters are almost not there anymore. Criticisms from various sectors regarding the Police and the Army are now less applicable. Previously, there were accusations of oppression from Tamils that the Police were oppressing them, but, the same Police and the Army oppressed the Sinhalese people in the late 1980s. We should therefore advocate for Police independence and addressing Army-related issues rather than establishing separate institutions based on ethnicity. Regarding land allocation, landless individuals should be provided with lands, irrespective of their nationality and religion. Furthermore, the Provincial Councils (PCs) in the North and the East (N-E) should function effectively. A notable example is the Chief Minister of Tamil Nadu, India, who has fostered rapid development in the State. Comparatively, past Chief Ministers of the Northern and Eastern Provinces have not achieved similar progress.