The Hon. S.M. Marikkar

¶ 01 Hon. Deputy Speaker, if the President’s Task Force under the Clean Sri Lanka programme does what local authorities failed to do, we welcome it. But it must clean what truly needs cleaning—not only trishaw gadgets and minor bus fittings.

¶ 02 On 06 January, “Divaina” reported “Unrefined oil imports cause Rs. 1,500 million tax hole” (it should be Rs. 5,000 million). On 12th, The Sunday Times: “Coconut oil import scam leaks Rs. 5 bn in tax evasion.” “Mawbima” carried extensive details. Up to 2024.01.01, unrefined coconut oil imported and later refined was not subject to VAT due to an earlier Gazette exemption; but from 2024.01.01 the exemption list no longer included refined coconut oil, so VAT became payable (18% VAT + 2.5% Social Security Levy) on refined oil sold locally.

¶ 03 From 2024.01.01 to end-October, 38,814,918 kg of coconut oil were imported: Amro Refiner (Pvt) Ltd 11.29 million kg; Amro Sugars 1.1 million kg; RG Brothers 624,000 kg; Sena Refineries 18.8 million kg; Sena Mills Refineries (Pvt) Ltd 4.25 million kg, etc. Unrefined oil brought in and sold without proper refining would have exposed people to toxins; if refined and sold, taxes of over Rs. 5 billion should have been paid.

¶ 04 One company wrote to President Ranil Wickremesinghe seeking tax exemption. The Department of Fiscal Policy (31 July 2024) wrote to the Inland Revenue Department referring to a letter dated 17 July 2024 from the Managing Director of Sena Mills Refineries (Pvt) Ltd to the President. The IRD replied on 29 August 2024: importing crude coconut oil and manufacturing refined coconut oil amounts to manufacturing, and supplies are liable to VAT from 1 January 2024. IRD also “recommended” taking the company’s observations into account in any policy—unnecessary if the Gazette is clear. Even after the new President assumed office, in October 1.65 million kg were imported (estimated VAT loss Rs. 247 million), in November 1.7 million kg (loss Rs. 255 million), in December 1.48 million kg (loss Rs. 225 million). Under President Wickremesinghe the total foregone is around Rs. 5 billion—the same amount the President says is allocated to buy paddy next season. Clean the fiscal frauds too—not only drains and mosquito sites.

¶ 05 Also, pre-election it was said electricity bills would be reduced from Rs. 9,000 to Rs. 6,000, then to Rs. 4,000; later it was said tariffs may rise by 37%. Despite profits of Rs. 139 billion, increases were floated, but public pressure led PUCSL to cut by 20%. When tariffs were earlier increased, the National Water Supply and Drainage Board raised water tariffs; now, with electricity down, water tariffs should be reduced accordingly.

¶ 06 On Meethotamulla (101 Watta): five houses were demolished under court order; 15 new houses exist. The UDA filed the case; I accept it’s commercial land for major development and relocation is required, but the method was wrong. Under former Minister Sarath Weerasekara, evictions began with animus; people were told to pay Rs. 1 million for new houses—impossible for daily wage earners. A later proposal allowed Rs. 500,000 down and installments, still unaffordable. Water supply was cut to force them out; even a Coordinating Committee directive to restore water was ignored. Houses demolished included those of a cancer patient, a wheelchair user, and a child with a chest condition; 15 more are to go. Eviction orders and rehousing are two different matters. Provide available UDA housing in Kolonnawa with a modest initial payment (e.g., Rs. 100,000) and installments. Do not victimise the poor.