News
Govt. in a bind over massive salary and pension bill: Revenue dwindles amidst pandemic
By Shamindra Ferdinando
State Minister Dr. Nalaka Godahewa says the country is in a bind due to dwindling revenue in the face of annual state sector salary and pension bill reaching a staggering Rs 1.2 trillion.
Dr. Godahewa, who holds Urban Development, Waste Disposal and Community Cleanliness portfolios, is of the view that the issue at hand should receive the attention of all political parties represented in Parliament.
The Viyathmaga pioneer, Godahewa said so when The Island sought a clarification as regards his admission at a recent event at the National Housing Development Authority (NHDA) that the government was left with Rs 200 bn after the allocation of Rs 1.2 bn for state sector salaries and pensions. The event was held to welcome those who had been recruited to the public sector.
The declaration comes in the wake of COPA (Committee on Public Accounts) faulting tax collection mechanism comprising Sri Lanka Customs, Inland Revenue and Excise Department for failing in their primary task. The annual income has fallen to just over 9 percent of the GDP (Gross Domestic Product) according to the Central Bank.
The State Minister said: “There are over 1.4 mn public sector workers. There is a large number of pensioners. Annually, we need about Rs 1.2 trillion to pay salaries and pensions. In 2020, our annual income was Rs 1.4 trillion. We are left with Rs 200 bn to provide health services, education, transport et al.”
Dr. Godahewa explained the government had no option but to obtain loans to manage the economy under extremely difficult situations.
The Gampaha District lawmaker questioned the responsibility on the part of the public sector as the country struggled to cope up with the daunting challenges caused by the raging Covid-19 epidemic. He pointed out that the public sector salaries and pensions had been fully paid in spite of severe difficulties whereas the private sector had imposed unilateral salary cuts.
During his address at the NHDA, State Minister Godahewa made reference to honest as well as corrupt public sector officers and those who neglected their responsibilities. Welcoming those who had newly joined the public service, Dr. Godahewa urged them to join the genuine lot.
The State Minister said that a few irresponsible individuals shouldn’t be allowed to tarnish the image of the entire public sector.
Dr. Godahewa admitted that the government too was responsible to see whether the public sector addresses the requirements of those who needed their services.
The national economy had suffered severe setback due to the total disruption of the tourism trade that brought as much as USD 5 bn annually, he said. The State Minister explained the crippling impact the disruption of tourism was having on the national economy at an event at Walapone where he inaugurated a major construction project. The State Minister emphasized the need to kick start tourism once the ongoing vaccination drive was brought to a successful conclusion by Sept-Oct 2021.
The SLPP is under heavy fire for depriving the Treasury of over Rs 500 bn at the onset of the incumbent administration. The SJB both in and outside parliament has alleged that the Treasury lost well over Rs. 500 bn due to a controversial decision to do away with a range of taxes, including PAYE (Pay As You Earn), NBT (Nation Building Tax), Withholding tax, Capital Gains tax imposed on the Colombo Stock Exchange, Bank Debit tax and unprecedented reduction of VAT (Value Added Tax). The SJB said that the 15% VAT and the 2% NBT which amounted to 17% imposed on all goods and services were unified and reduced to 8%, effective from the first of December 2019.
SJB senior Mujibur Rahman said that the decision was taken at the first cabinet meeting of the incumbent government held on Nov 27, 2019.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
