roadBlockAd
brand logo

Harsha uncovers IMF conditions, doesn’t publicise 

10 Nov 2022

  • Claims tax reforms to be implemented from 2022-25
  • Asks how report was given to others but not COPF  
  • Siyambalapitiya asks Harsha not to agitate public
  • Dilan Perera backs Harsha
BY Buddhika Samaraweera Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva, who said in Parliament yesterday (9) that he has received the report containing all the facts related to the staff-level agreement reached between the Government and the International Monetary Fund (IMF) through an external party, however did not disclose to Parliament any of its contents beside the fact that the relevant report states that “tax reforms will be implemented from 2022 to 2025”. Speaking in Parliament, Dr. de Silva said that he is in possession of the relevant report which contains the points to which the Government agreed on with the IMF at the staff level. He said that the report did not reach them through Parliament, but that it has been given to several individuals in some of the committees appointed by the President. He also said that he will not table the report in Parliament, as it may be claimed that sensitive information was released because it was tabled.  “How did the report that could not be given to the Committee on Public Finance (COPF) go to other people? It has everything that the Government needs to do. I will not read it out because it is not good, I will not table it. However, here it says, ‘tax reforms to be implemented from 2022 to 2025’. I am only reading out the topic. This has everything such as how to increase value added tax (VAT), how to increase personal income tax, how to raise it from 5% to 36%, corporate income tax, Excise and Customs duty and automatic indexation. All these are in this report.” When Dr. de Silva was making the statement, several MPs representing the ruling Sri Lanka Podujana Peramuna (SLPP) party were seen interrupting him, but he continued his speech, replying to them saying: “I am not reading it out, I am only reading out the title.”  At this time, there was a dialogue between him and State Minister of Finance Ranjith Siyambalapitiya. Siyambalapitiya said: “You know about the economy of this country. Therefore, do not make the people and the Parliament panic by reading out this document you have received accidentally. Understand the challenges of the country. You are a. MP who understands the situation.”  In response, Dr. de Silva stated: “I am not reading this out, because I understand the situation and I am a responsible person.” Siyambalapitiya, who stood up again at the time, said: “The way you read is worse than reading it (the report). Understand the needs of this country. You are the Chairman of the COPF. What you are doing is wrong.” “Independent” opposition MP Dilan Perera, who raised a point of order at the time, said: “When an MP reads out the report on the conditions with regard to the IMF that have not been presented to Parliament, Siyambalapitiya asks the Opposition MPs not to scare the people.”  Deputy Speaker of Parliament and SLPP MP Ajith Rajapakse, who was sitting in the Speaker's chair at the time said: “No, he [Siyambalapitiya] did not say so. What he said is that this is not a letter that can be published.”  As he was once again given the opportunity to speak, Perera said: “We respect Siyambalapitiya. Therefore, we ask him not to do things in secrecy.”  After Perera’s speech, Siyambalapitiya stood and replied: “I don't want to get into an argument with Perera, who has been studying with me in the same class. I only asked him (Dr. de Silva) not to read out this accidentally received document. He is a responsible economist. As we know the situation that this country is in, let us talk about these things as openly as possible, but with real information. There is nothing else.”  In response to Siyambalapitiya, Dr. de Silva said that he does not intend to table the relevant report in Parliament as he is acting in a responsible manner. Emphasising that the report in his hand was the report which contains information with regard to the agreement between the Government and the IMF, he queried as to how it has been received by certain individuals whereas it has not even been given to the COPF.  “There are sensitive matters in this report. Various individuals can get various benefits from these matters. Benefits can be worked out for some individuals. That is what I am saying. It is wrong for this report to be given to such individuals. This report needs to be submitted to the COPF. Then, we can discuss how to increase taxes at the minimum. We know that raising taxes is necessary to increase revenue. As certain political parties say, we do not say that taxes should not be raised, but that taxes should be raised fairly,” he added. The IMF mission that visited Colombo in August to continue discussions on IMF support for Sri Lanka, and the authorities’ comprehensive economic reform programme, stated in September that a staff-level agreement had been reached to support Sri Lanka's economic policies with a 48-month arrangement under an Extended Fund Facility of $ 2.9 billion. Since the announcement of the said agreement, several parties including the SJB, which is also the main Parliamentary Opposition, have insisted that the Government should disclose the agreement which has been reached with the IMF to the public.   


More News..