Sri Lankan Economy Down Its Slippery Slope: Shares hit 5-month low after govt’s retrospective tax plan
Posted on February 2nd, 2015

Yahapalanaya News

Reuters reports Sri Lankan shares fell to over five-month lows on Monday due to panic selling in blue-chips, led by John Keells Holdings Plc as concerns over future earnings weighed on sentiment after the government raised taxes on cash-rich firms.

The day’s fall erased market capitalisation by 76.3 billion rupees ($577.2 million) on Monday after erasing 83.2 billion on Friday. The market is valued at 2.97 trillion rupees as on Monday.

The index has fallen 5.10 percent since Sri Lanka’s new government on Thursday announced a budget that imposed a one-time ‘super gain tax’ of 25 percent on companies or individuals who earned over 2 billion rupees profits in 2013/2014.

The main stock index, ended 2.51 percent, or 179.99 points, down at 7,000.06, its lowest since Aug. 28.

Reuters further report of panic selling, Keells is the main reason for today’s fall,” said Reshan Wediwardana, research analyst at First Capital Equities (Pvt) Ltd.

“Still it’s not clear how the super gain tax is going to be charged,” he said.

Analysts said the market would continue to fall on ‘super gain tax’ worries and the reaction of foreign investors would be the key.

Meanwhile the Gradient Alliance in its monthly report predicts that the Interim budget 2015may bring sweet news for the masses for the time but the big business may suffer.

The new administration presented its interim budget providing significant concessions to the public (via removal of taxes on consumer goods), increasing public sector wages and taxing conventional (high earning companies, casinos, telecoms etc.) as well as remote avenues. Widely considered as one of the most populist budgets in recent times, a number of proposals are clearly introduced with an eagle eye on the upcoming general elections in April/May 2015

Notable winners are the masses, but notable losers are big business as a number of one -time taxes and a new super gain tax were introduced, applicable immediately.

While these businesses may have benefitted from the previous regime’s lax tax policies applying such significant levies suddenly is not helpful when the country is seeking to encourage greater local investment and attract foreign funds.

Moreover, amidst the euphoria of concessions and taxes, initiatives are to be outlined to gradually increase education spending to 6% of GDP and healthcare spending to 3% of GDP.

Sri Lanka falls to its worst position in the Global Economic Freedom Index.

Sri Lanka was ranked 101st out of 178 countries in the 2015 Global Economic Freedom Index, a staggering 11 place drop since 2014 and remained in the mostly unfree” group. A reflection of the policies adopted by the previous government, the 2015 position is lower than in 2013 (81st) and 2012 (97th). The index compiled by The Wall Street Journal and The Heritage Foundation noted that Sri Lanka had made;  Modest gains in freedom from corruption and the management of Government spending in Sri Lanka were outweighed by declines in half of the 10 economic freedoms, including investment freedom, property rights, and trade freedom.  Overall, however, the foundations of economic freedom remain weak. Property rights are hard to enforce because of fraud, and a weak Judiciary fails to mediate disputes effectively.  Government industrial policies distort trade and shelter domestic industry from competition. The Central Bank is not fully independent, raising the fear of inflation and monetised Government deficits. Sri Lanka score of 58.6 was below the world average of 60.4.. Hong Kong was ranked number one followed by Singapore and New Zealand. In South Asia Sri Lanka was ahead of Bhutan (115th), India (128th), Pakistan (121st), Bangladesh (131st) and Nepal (152nd).

We are going to create an even playing field for investment in Sri Lanka”: Eran W. Mr. Eran Wickramaratne, new Deputy Minister, Investment Promotion and Highways speaking to LBO said that a level playing environment would be created to attract investors as well as new projects. Preferential treatment for certain projects and individuals was a norm under A few such deals have been temporarily halted significantly the USD 3.4bn Colombo Port City Project and the proposed Northern Expressway (USD 4.5bn). Mr. Wickramaratne added;

While these businesses may have benefitted from the previous regime’s lax tax policies applying such significant levies suddenly is not helpful when the country is seeking to encourage greater local investment and attract foreign funds.

Fuel price cut to cost CPC Rs.65bn.

The recent reduction in petrol, diesel and kerosene prices is to cause a loss of Rs.65bn in revenue at the Ceylon Petroleum Corporation (CPC).

According to Mr. Champika Ranawaka, Minister, Power and Energy, most of the price reduction relates to the withdrawal of taxes from these commodities and further went to state that future revisions will be based on a transparent formula for fuel pricing and electricity tariffs to be introduced mid-year”. Mr. Ranawaka requested the public transport providers and others to pass on the relief but to date private bus operators have agreed to a 7-8% reduction in fares while three-wheelers have refused to lower prices.

($1 = 132.2000 Sri Lankan rupees)

42 Responses to “Sri Lankan Economy Down Its Slippery Slope: Shares hit 5-month low after govt’s retrospective tax plan”

  1. NeelaMahaYoda Says:

    All the indications are there to predict a significant economic downturn within next two years, without having a proper economic resources management system in place (UNP never had one except ad-hoc strategies),

    Investors will move away from Sri Lanka, (already started no more cheap loans from China, But US will borrow it from China and give it to you at higher interest rate)

    inflation will hit the ceiling, (Prices of commodities provided by the big businesses go up rapidly to compensate for extra tax -like mobile, imported food items etc)

    Value of SL Rupee will slide down to 1$=150SLR in 2018

    Practically nullifying all the concessions provided by the controversial interim budget 2015

    This is called economic mismanagement by amateurs.(Such things will never happen in the developed world)

    Confirming my conclusion, Ranil publicly called this Budget as Suura Saradiel’s ( Robinhood) type budget.

  2. Mr. Bernard Wijeyasingha Says:

    The index has fallen 5.10 percent since Sri Lanka’s new government on Thursday announced a budget that imposed a one-time ‘super gain tax’ of 25 percent on companies or individuals who earned over 2 billion rupees profits in 2013/2014.

    and

    SRI LANKA FALLS TO ITS WORST POSITION IN THE GLOBAL ECONOMIC INDEX

    BUT THAT DOES NOT MATTER!!!

    DEMOCRACY HAS PREVAILED. FREEDOM OF THE PRESS HAS PREVAILED. THE RIGHTS OF TAMILS HAS PREVAILED.

    ISN’T THAT WHAT MATTERS? SRI LANKA’S ECONOMY CAN COLLAPSE.
    ELAM CAN FORM
    TAMILS WIN
    ALL IN THE NAME OF DEMOCRACY FOR THAT IS ALL THAT COUNTS. YEAY

  3. NeelaMahaYoda Says:

    BW
    Did you notice something peculiar in this amateur’s budget?

    In the history of taxing, for the first time they have introduced tax on past profit only in Sri Lanka. I.e. tax imposed on profit made during the past tax year 2013/2014. A civilised world will never do that. These companies have already paid 28 per cent as taxes for tax year 2013/2014, if25 per cent taxed again then it would be 53 per cent of the total profit.

    This is easiest way to frighten the hell out of foreign investors in Sri Lanka. There is no law and order under Yahapalanaya, anything can happened to your investment in Sri Lanka.

    http://www.adaderanabiz.lk, economic analyst Hasitha Premaratne said this tax imposed on past profits is an issue. This is a proposal to impose a tax of 25 per cent on companies gaining a profit of more than Rs. 02 billion during the financial year 2013-14.

    Adaderana says companies like John Keells Holdings, Distilleries Company of Sri Lanka (DCSL), Ceylon Tobacco Company, Carsons, Bukit Dara, Aitken Spence, Nestle, Overseas Realty, Access Engineering, Lanka India Oil Company (LIOC), Lanka Lubricant, AHPL, HHL and Tokyo Cement falling within this tax net, there are also possibilities of banks like Commercial, Hatton National, Sampath, DFCC, Seylan, Nations Trust (NTB), National Development (NDB) banks and Ceylinco Insurance Company, Central Finance, People’s Leasing etc which represent the financial sector falling under this tax scheme

  4. Lorenzo Says:

    Please don’t create PANIC. Panic is what drives down the stock market.

    IF foreign investors go we are in DEEP trouble.
    IF political instability chases away TOURISTS we are in hell.

    So don’t PANIC. There is nothing to worry TOO MUCH.

  5. Susantha Wijesinghe Says:

    FRAN DIAS !! YES, SRI LANKANS SHOULD NOT PANICK. NOTHING TO WURRY TOOOO MUCH MACHAANG.

    WE ARE IN DEEP TROBOLE, WE ARE IN HELL, SO NOTHING TO WURRY. EAT HUT DAAL BRINJAAL SAMBAAL THUTS ARL.

  6. Nanda Says:

    Susantha,
    What happened to you ? Fran = Lorenzo = Percy ? I don’t think so. Don’t know about Precy (may be =MR) but Fran Diaz is definitely not Lorenzo.

  7. Lorenzo Says:

    SW,

    I have only ONE handle for comments in LW – Lorenzo. NEVER created anyother even when banned.

    But I had 23 avatars in Facebook during election time. 14 twitter accounts. 5 temporary websites. 2 temporary blogs. 1 rented printing press in Vavuniya printing mostly Singhala posters, handbills. Given away 20 mobiles to our “mans on the ground” working hard for the election. 1 hired lorry.

  8. Geeth Says:

    Lorenzo,
    How much did they pay you? They had lot of dollars, and they gave away by kilos and pounds. How many kilos did you get? What’s wrong with you Lorenzo? How can one turn 180 degree like this?

  9. Christie Says:

    Namaste: Indian economy is going to do better with our budget. Jai Hind

  10. Lorenzo Says:

    Geeth,

    $0. NO ONE paid me or gave me anything. I WASTED $*,*** for this from my pocket.

    WHY? Why did I change?

    Because the way MR was managing the country AFTER 2010 was BAD (to say the least). Tamil Elamists were LAUGHING at us. They put pressure on MR on BS war crimes through Geneva and MR goes and gives them everything. NOTHING for others!

    Look at YARL DEVI. NO SINGHALESE can get into it when the train comes to Anuradhapura on MOST days. Previously they could SIT and travel.

    300,000 Tamil IDPs resettled in record time. 100,000 Singhalese and 200,000 Muslims not resettled at all.

    What REALLY got me over the line was the appointment of 6 WAR CRIMES SPECIALIST LEGAL MINDS from the UK, USA, etc. to look into the SL war and disappearences! How could he! I can tell you their report RIGHT NOW. Soldiers and army officers are guilty of war crimes!! That is what they will tell. FOXES TO MIND THE HEN HOUSE!! Some of them are EXPERTS in saving political leadership by blaming the soldiers.

    I don’t know why other patriots don’t see what I see.

  11. Susantha Wijesinghe Says:

    OH !!!! NANDA !!! I addressed them. I may have put = at a time I was sleepy. Just forget it. Sorry, sorry. Hi Hombre ! Whats your Handle ?

    Lorenzo ! I know you are a hard worker. I did not have such sophistication during election time. Good for you.

  12. Ananda-USA Says:

    “Facebook” Lorenzo LIES AGAIN playing with Semantics of “Articles” Vs “Comments”: “I have only ONE handle for comments in LW – Lorenzo. NEVER created any other even when banned.”

    Aiyoooo Lorenzoooo …. BAREFACED BORU KIYANAWA NEDA???

    There is ONE handle that he wants to KEEP STRICTLY Secret …. YOU KNOW WHICH ONE I’m talking about don’t you “Facebook” Lorenzo?

    BLOODY LYING EELAMIST HYPOCRITE!

    Aiyoooo Lorenzoooo …. BAREFACED BORU KIYANAWA NEDA??? DANWATH ATTHA KIYAPAN YAKO!

  13. Ananda-USA Says:

    “Facebook” Lorenzo, TRYING HARD to creep back in as a “Paatrot” says “Please don’t create PANIC. Panic is what drives down the stock market.”

    This was the SAME EELAMIST HYPOCRITE that PERSISTED in Undermining the UPFA GOSL that Liberated and Reunified our Motherland!

    When I PLEADED “Please don’t create PANIC. Panic is what drives REGIME CHANGE” this hidden EELAMIST HYPOCRITE continued to PRESENT LISTS of reasons why the UPFA GOSL should be OUSTEd!

    Then, when I made LankaWeb TOO HOT and UNPRODUCTIVE for hm, he DECAMPED to the green pasture of Facebook 1 month before the Election, where he DANCED THE SAME KOLAMA to MISLEAD the GULLIBLE, and the UNWARY!

    Aiyooooo Lorenzoooo, THAAMA Kolam NATANAWA Nedaaaaaaaa! LAJJA NADDaaaaa, BORU KIYANDDAaaaaaa??

  14. Ananda-USA Says:

    “Facebook” Lorenzo wails “Look at YARL DEVI. NO SINGHALESE can get into it when the train comes to Anuradhapura on MOST days. Previously they could SIT and travel.”

    Is this a SIGNIFICANT REASON to OUST the UPFA GOSL that Liberated the Nation and was Developing the Nation at BREAKNECK pace? Is It??

    If so, then why don’t you cutoff that UGLY LUMP you call your NOSE to SPITE your face TOO?

    There is no BALANCE to your STATEMENTS; EVERYTHING is PRESENTED as if it is a REASON TO HANG MR! That is the BEGINNING and the END of your REASONING …. BECAUSE it WAS and IS your GOAL as an EELAMIST!

    There were MANY COMPELLING REASONS to develop the North and East Ra[idly:

    1. Defuse International Criticism quickly,

    2. Enable the Tamil people, however much they supported the LTTE in the past, the opportunity to rapidly reconstruct their livelihoods,

    3. To CREATE the BASIC INFRASTRUCTURE NECESSARY for Sinhala people to WILLINGLY VOLUNTEER to settle in the North and East in search of greater opportunities.

    Sinhala people will not settle in a devastated war zone, without decent Roads, Railways, Post Offices, Banks, Police Security, Supermarkets, and all the infrastructure necessary to create jobs for workers, and the means for farmers and other producers of manufactured goods, to sell their products locally, and in markets in the rest of the country.

    That voluntary migration and settlement by Sinhala people, is not the RAPID GOSL sponsored settlement we like to see in the North and East, but is very likely to be MORE PERMANENT & STABLE than GOSL settlement BECAUSE of the National Infrastructure that the GOSL was creating there to INTEGRATE the entire nation into ONE WHOLE.

    That is the PRINCIPAL REASON why the TNA DOES NOT WANT Infrastructre Development by the GOSL in the North and East. They don’t want it UNTIL THEY HAVE THE LAND and POLICE Powers to prevent the migration and settling of Sinhala people in those areas. EXCLUSION of Sinhala people from SETTLING in those areas WAS and WILL FOREVER BE the FOCUS of their RACIST concept of EELAM!

    And you, “Facebook” Lorenzo … KNEW that VERY WELL … so you did your UTMOST to UNDERMINE and OUST the UPFA GOSL before that OBJECTIVE of INTEGRATING the North & EAST into the rest of Sri Lanka could be achieved!

    BLOODY EELAMIST HYPOCRITE & DROHIYA INCARNATE!</b?

  15. Lorenzo Says:

    Under-USA has gone TOTALLY CRAZY. Don’t you have ANYTHING USEFUL to say other than ABUSE? Anyway I enjoy reading your SOUR LOSER comments! :))

    You will see WHY I was right. Just hang in there for another few months. You are a slow learner. You have still not come to terms with MR’s defeat. But it will be APARENT in another few months.

  16. ranjit Says:

    This is the beginning of Yahapalanaya. Let’s wait and see how it ends. All the yankee doodles just stay back where you are because it will be like South Sudan very soon. No new companies,No new roads,No new schools,No new anything just eat your Dhal and Dry fish Imported from India and drink some wine from America.

    Americans are saying they are very excited to have Sira/Ranil/Chandrika trio as pilot and co-pilots in their newest Indo/Lanka/American flight which is flying smoothly at the moment because Opposition is allowing them to do so. What they did before 2005 will happen again to our country without any doubt. That is for sure with these Yahapalana idiots. They ruined the economy before and they will do the same again. They do not have any vision to our country, just simply getting advise and money from their western bosses to be in power. These guys do not have any new creative things in their heads but act like thugs along with their new friends JVP to intimidate and harass decent people. They use abusive language all the time against the Opposition members. They dream about staying in power for ever but they do not know when their time will be over. Just hang on there for now and enjoy you Yahaplana thieves. The spoon is in our hand, the citizens.

  17. NAK Says:

    Lorenzo,
    You make me feel sad,very very sad. I see you seem to have problem of getting in to the train from Anuradhapura as trains are already filled by the time it reaches Anuradhapura.
    Don’t you think they have the right to trian travel as much as you do. What you should have done was to agitate for the railway authories to start another train so that you guys can travel comfortably.

    You completely shattered my picture of you.

    I don’t feel like calling this President our democratically elected President and MR has nothing to do with it.
    If MR was beaten fair and square we are quite strong enough to accept it and understan it, for there were reasons to justify it. And I am not refering to avamangla allegation list. He had shortcomings.
    But this election with millions of dollars pumped by the US and ‘RAW’ subverting the democratic choice of our people
    I really don’t think it reflects the actual choice of the people of this country.

  18. Nanda Says:

    Yahapalanaya News

    1. හමස්මල්ලේ නඩු 600ක් අවසන්

    2015 පෙබරවාරි මස 03 12:16:25 | . , ඤාණාදස රන්මුතු
    බලපිටිය මහාධිකරණයේ වසර දහයක පහළොවක කාලයක් තිස්සේ දිනෙන් දින කල් දමමින් තිබූ අපරාධ නඩු හාර සියයක්ද අනෙකුත් පොදු අභියාචනා නඩු දෙසීයක්ද බලපිටිය මහාධිකරණ විනිසුරුවරයා වශයෙන් මෑතදී පත්ව ආ මොහාන් සෙනෙවිරත්න මහතාගේ කෙටි කාලයක් තුළදී විභාග කොට අවසන් කිරීමට හැකිවූ බව මහාධිකරණ ආරංචි මාර්ගවලින් දැන ගන්නට ලැබුණි.

    මේ නිසා නඩුවලට අදාල පාර්ශ්වකරුවන්ට මාස ගණන් රස්තියාදුවීමටත් දිගින් දිගට

    නීතිඥ ගාස්තු ගෙවමින් මුදල් වැය කිරීමටත් තිබූ අපහසුතාවයන් බොහෝ දුරට මග හැරී ඇති අතර ඔවුන්ට මේ නිසා විශාල සහනයක් ලැබී ඇති බැව්ද බොහෝ දෙනාගේ අදහසවී තිබේ.

    2. සිගරට් පැකට්ටුවේ රූපමය අවවාද නැත්නම් නඩු?

    2015 පෙබරවාරි මස 02 20:58:45 | . , ඉන්දිකා රාමනායක

    සියයට හැටක රූපමය අවවාද සඳහන් නොකර සිගරට් පැකට් අලෙවි කරන වෙළෙඳුන්ට හා ඒවා නිෂ්පාදනය කරන සමාගම්වලට එරෙහිව ඉදිරියේ දී නීතිය ක්‍රියාත්මක කරන බව පොලිස් මාධ්‍ය ප්‍රකාශක ජ්‍යෙෂ්ඨ පොලිස් අධිකාරී අජිත් රෝහණ මහතා කියයි.

    දැනට නිෂ්පාදනය කර ඇති සිගරට් පැකට්වල සියයට හැටක මෙම රූපමය අවවාදය සඳහන් නොකිරීම හේතුවෙන් මේ සම්බන්ධයෙන් නීතිය ක්‍රියාත්මක කිරීමට යාමේ දී පොලිසිය ගැටළු රැසකට මුහුණ දුන් බවත්, වෙළෙඳුන්ගේ හා නිෂ්පාදන සමාගම්වල ඉල්ලීම මත පසුගිය 31 වැනි දා දක්වා සහන කාලයක් දුන් බවත් පොලිස් මාධ්‍ය ප්‍රකාශක පවසයි.

    3.

    The 28th Session of the United Nations Human Rights Council is scheduled to take place in Geneva next month.

    The investigations that were carried out by the UN regarding the alleged human rights violations in Sri Lanka will also be tabled at this session.

    Attorney-at-Law Dr. Prathiba Mahanamahewa says that Sri Lanka could expect a favourable response at the session following the change of political power in the country.

  19. NAK Says:

    Lorenzo, We are not doing anything to create panic. The government is doing it themselves!

  20. Lorenzo Says:

    NAK,

    I’m not here for POPULARITY. The train example is just ONE of MANY examples. Why did you miss the MOST important thing?

    “What REALLY got me over the line was the appointment of 6 WAR CRIMES SPECIALIST LEGAL MINDS from the UK, USA, etc. to look into the SL war and disappearences! How could he! I can tell you their report RIGHT NOW. Soldiers and army officers are guilty of war crimes!! That is what they will tell. FOXES TO MIND THE HEN HOUSE!!”

    In countries like JAPAN they WORSHIP their soldiers and commanders! We bring Americans, Englishmen, Endians, etc. to FRAME our own soldiers and commanders!! What a country!

    Can ANYONE in the right mind approve this?

  21. NeelaMahaYoda Says:

    Dear All
    As Lorenzo has already confessed, I think it is time that we should tell Lorenzo all what we knew about Lorenzo.

    Lorenzo was another Western operative commenting on LW as if he is a patriot from Sri Lanka. By the way, only Lankaweb moderator knows about the IP addresses used by him to post his comments on Lankaweb.

    Those who do not know, please note that the last presidential election in Sri Lanka has all the signs of CIA inspired face-book revolutions repeated in many countries in the world using SMS messages, twitters, face books, websites and blogs to discredit their opponents.

    As confessed by Lorenzo himself he has engaged in this exercise above and over a normal commentator would have been posted comment on a website–

    I have only ONE handle for comments in LW – Lorenzo. NEVER created anyother even when banned.
    But I had 23 avatars in Facebook during election time. 14 twitter accounts. 5 temporary websites. 2 temporary blogs. 1 rented printing press in Vavuniya printing mostly Singhala posters, handbills. Given away 20 mobiles to our “mans on the ground” working hard for the election. 1 hired lorry.

    Lorenzo admitted some of the mud-slinging materials they were provided with;

    His advsors gave My3 a very aggressive STORY about Buckingham stables, helicopters, Lamboghinis, Yatches, corporate jets, etc. and BANG! If mud is the name of the game you will not find us lacking it.

    With the bombardments of false messages after messages they managed to convince only the people who got access to internet that Rajapakse family is corrupted to the core. A significant number of middle class families in and around Colombo and Kandy believed that and fallen into that trap. So, Rajapakse lost his majority in this areas. Even President Sirisena has acknowledge this and thanks the youngsters who participated in the facebook revolution, knowingly or unknowingly that this process was stage managed by western undercover operators but carried out by paid computer operators in Sri Lanka, in India and in Pakistan.

    Lorenzo also got access to some of the confidential reports also;

    There are 2 war crimes reports coming out in a few months. The UNHRC report and MR’s 6 international war crimes prosecutors report. BOTH will find our soldiers guilty of war crimes. That was DECIDED even before the investigation by the TAMIL woman at the UNHRC. (“korage amma gen pena ahanawaa”). It will also find GR and MR guilty. The SHAM investigation just JUSTIFYING this BS decision already made. MR’s 6 lawyers report will also find soldiers GUILTY but will save GR and MR.

    And this is Lorenzo’s camouflage;

    $0. NO ONE paid me or gave me anything. I WASTED $*,*** for this from my pocket.
    WHY? Why did I change?
    Because the way MR was managing the country AFTER 2010 was BAD (to say the least). Tamil Elamists were LAUGHING at us. They put pressure on MR on BS war crimes through Geneva and MR goes and gives them everything. NOTHING for others!
    Look at YARL DEVI. NO SINGHALESE can get into it when the train comes to Anuradhapura on MOST days. Previously they could SIT and travel.
    300,000 Tamil IDPs resettled in record time. 100,000 Singhalese and 200,000 Muslims not resettled at all.
    What REALLY got me over the line was the appointment of 6 WAR CRIMES SPECIALIST LEGAL MINDS from the UK, USA, etc. to look into the SL war and disappearances! How could he! I can tell you their report RIGHT NOW. Soldiers and army officers are guilty of war crimes!! That is what they will tell. FOXES TO MIND THE HEN HOUSE!! Some of them are EXPERTS in saving political leadership by blaming the soldiers.
    I don’t know why other patriots don’t see what I see.

  22. SenaD Says:

    This report is about the so called saving announced by MS himself; the claimed saving has been revealed to be bogus.

    Adaderana reported:

    “Though the media had publicized that former President Mahinda Rajapaksa had ordered for an aircraft for his personal use, the highest sources within the civil aviation sector revealed to http://www.adaderanabiz.lk that such a separate aircraft has never been ordered.

    Several VIP Kits were attached only as complimentary offers when SriLankan Airlines purchased several aircraft for its fleet from the Airbus Group recently. The allegation of having ordered a separate aircraft may have been based on this VIP Kit. However, while this VIP Kit is not an aircraft it is only a facility where several seats within the plane could be removed and this cubicle with special facilities could be installed within this space.Airbus has valued this VIP Kit at USD 15 million only to indicate the added financial value of this free offer when these aircraft are purchased. However, this financial value cannot be obtained or deducted from the value of the aircraft by refusing this VIP Kit. Instead, only some other item/s could be requested from the Airbus Group to offset this value.

    Even the new government’s interim budget has stated thus on this VIP Kit which is not an aircraft:

    “The recent Airbus purchases made by the loss making national airline brings out another wanton exercise of utter waste where a VIP kit had been attached valued at US$ 15 million offered free of charge. Whereas a question could be asked as to why the cost had not been renegotiated without including luxury equipment or is it another episode under the mega deal category.”

    On this basis, while accepting this VIP Kit has been stopped on the advice of a very high SriLanka Airlines official, http://www.adaderanabiz.lk learns that SriLanka Airlines is examining whether any other Airbus Group product instead of this package.

    According to the information provided on the Airbus Group website, this VIP Kit is not a separate aircraft. It is only a separate cubicle with extra facilities which could be fixed inside an aircraft within around eight hours.

    There could be around six twin seats with facilities within this cubicle, states Airbus.”

    So, there is no saving of $15m announced by MS is a bogus claim and there is no saving at all.

    Like the false story that the finance minister floated about an account (~ Rs. 8b) held by GR the announcements that were made about floating armouries being found too were found to be run legally.

    When the account held by GR being held legally and the floating armouries are legally run operations were reported by the new defence secretary the man was asked to explain why he is divulging the truth.

    One by one the claims are being shown to be bogus.

    There are the other clams by CR, the power minister, and the ones being compiled by the rathu sahodarayas. My guess is that they will continue this clamour about ‘horrendous corruptions’ until the GE is over.

  23. Susantha Wijesinghe Says:

    LORENZO !! YOU SAY “””I WASTED $*,*** for this from my pocket “”” I note from the asterisks, that the minimum could be a $1000.00 and the maximum would be $9999.00. That is a hellava lut ov money. It appears that you did not reap the harvest that you expected, when you say ***I WASTED ***

    You appear to be disappointed with President Maithreepala, as you have, up to now received no reciprocal fruition, for the quantum of Dollars thrown in. Dont Panic, be patient, You will be at least a Chairman of a Corporation. Wish you luck.

    IF YOU CAN USE YOUR CLOUT TO GET PRESIDENT MAITHREEPALA TO RE-SETTLE ALL THE SINHALES AND MUSLIMS BACK IN THE NORTH, THE NUMBERS YOU HAVE MENTIONED, THOSE WHO WERE ETHNICALLY CLEANSED, PLEASE DO SO.

  24. SA Kumar Says:

    Lorenzo- You open you mouth yourself -I WASTED $*,*** for this from my pocket- you must be rich man not like us ( Thamil Akathikal in Western world) working in Chicken shop .
    do you thing even my 5 years old my daughter will believe you ??? your are not working for VP & Co .

    Ananda-USA agreed all three point to (1. Defuse 2. Enable the Tamil people 3. To CREATE the BASIC )
    also TNA DOES NOT WANT Infrastructre Development by the GOSL in the North and East until police&land power.

    My prayer was if MR would have won election (6 more years to rule) Our Racist TNA ruling will be disappeared itself .( as MR said Naan ungal sakothran ennai ningal Nambala – I am your brother you can trust me -yes Tamil start to trust him) but all gone now We back to basic now.

    Now We Have Three country at end of the game We will have four (one for Indian Tamil-Malayaham ad Modi will look after his own Hindhu people also We Jaffana Tamil will support )

  25. SA Kumar Says:

    SW
    THE NUMBERS YOU HAVE MENTIONED, THOSE WHO WERE ETHNICALLY CLEANSED, PLEASE DO SO- Please do you really believe him?
    I lived in Jaffna until 1983 Not 100,000 Sinhales or 200,000 Muslim lived their
    eg: In Jaffna town one Sinhala Mahavidayalam , one Bhuddist Temple , One Sinhala bakery in Hospital road, One Senanayaka Book book shop in standly Road & few road side shop(not sure Sinalese or States Tamil shop)
    so how come 100,000 lived?
    Muslim agreed They had a muslim town next to Kasthurira Road but 200,000 too high I believe maxium 20 to 25,000 may be litte more because They speck muslim Tamil & our Jaffna Tamil very well so not easy to differenrat unless they diclaire themselves.

  26. Fran Diaz Says:

    Susantha,

    No need for us to panic. That is true.
    But, it is almost the whole world that is in a financial mess, thanks to poor financial systems and fiscal mismanagement and Money before People theories.

    Re the troubles in Sri Lanka :

    Tamil leaders misleading the Tamil People, taking them AWAY from Peace & Prosperity, taking them BACKWARDS to Disunity,
    Disharmony, Separatism etc. to suit the agendas of vested interests, and control of India & China.

  27. Fran Diaz Says:

    I think the new President is being taken down a slippery slope by those having real power over Sri Lanka at present.
    The old ‘divide & rule’ principle, the favorite Brit thing, y’know ol’ chap !

    Poor Pres. Sirisena – I hope he realises that he is being misled.

    And golly NO ! I am not Lorenzo ! Heaven forbid ! Lorenzo speaks with a forked tongue these days. He was balanced in his writings whilst the war with the LTTE was on, but now very biased and wants to brain wash the Sinhala people into his way of thinking which is Yaalpanam/vested interests rule.

  28. Mr. Bernard Wijeyasingha Says:

    NeelaMahaYoda:

    Thanks for the information about the retrograde taxes. Sirisena and his merry Coalition have already put in jeopardy Sri Lanka’s strategic relationship with China. that alone tells a lot.

    He has done nothing for the economy in these early days but used them to bring unwarranted charges on Rajapakse, pass legislation to approve Amendment 13, wants to meet with New Delhi above any other nation. India is the only nation who fully supported the Tamil Tigers during the war and the human rights motions after the war in that region. Instead of going to Beijing he plans to go to New Delhi when a RAW agent was kicked out during the elections

    If RAW could have personally chosen a puppet they could not have done better than Sirisena.

  29. SA Kumar Says:

    Mr. Bernard Wijeyasingha
    RAW – Trained & armed (initialy)VP&co (other 18 Tamil groups ) 1987 and wiped out on 18th May 2009.
    eg: Mr Manmohan Singh’s one single phone call could have stopped Nanthi kadda end but he did not do it why ?
    because He wants to wiped out VP&co without blood in his hand (to manage TN).

    All Three (MS,RW& CBK) are carrying out RAW/Western order -open secret my Sinhala brother.
    they have divide Mother Lanka into four now .

  30. Ratanapala Says:

    Capitalist Economies have two important statistics that give impressive growth rates. They are the minimum wage and the other the rate at which the rich are taxed. These are highly sensitive parameters and governments in successful capitalist economies fight tooth and nail not to budge these inadvertently. In America the minimum wage is $14.50. This is why there are so many in America living out of card board boxes and street dwellers feeding out of soup kitchens. This is why in the UK they planted steel pikes where it is likely for homeless to sleep. None of these happened under the Rajapakse administration.

    The fact is- it is difficult to get work out of the poor and the engines of growth are the rich. Corruption is very much like the Second Law of Thermodynamics – It is impossible to get Work without Losses!

    Only the future will tell what is in store for the Sri Lankan people who wanted to “Feather the Golden Goose!”

  31. Lorenzo Says:

    NMY,

    I worked even HARDER to get MR elected in 2005 and 2010.

    In a democratic country people should have the RIGHT to support ANY political party they like and the FREEDOM to express their opinion without getting abused or restricted.

    On the war crimes reports, YES. Just wait for a few months and see WHO the MR appointed commission’s war crimes report blames. Then please remember my prophetic statement!

  32. Lorenzo Says:

    SW and Fran,

    Aren’t the JHU, JVP, SF party, My3 patriots? Are KP, Karuna, Sajin Vaas, Duminda SIlva, Mervin Silva, Aluthgamage, Basil, etc. patriots?

    6.2 million ADULT SLs cannot be wrong.

    No I don’t regret My3 becoming president. I don’t like some things that the UNP is doing.

  33. Ananda-USA Says:

    NeelaMahaYoda,

    THANK YOU for Collecting “Facebook” Lorenzo’s PROUNCEMENTs into ONE DAMNING INDICTMENT of his ANTI-NATIONAL EELAMIST activities here at LankaWeb and elsewhere!

    Bravo! It is ABOUT TIME we WISED UP ABOUT this UNREPENTANT HYPOCRITE dancing his EELAMIST KOLAMA here!

    If WE SONS OF MOTHERLANKA will not RISE UP in HER DEFENSE, WHO WILL?

    He wants to STAB US in the back when he wants to, and CREEP BACK into the fold as a PATRIOT …. convinced as he is that Sinhala People are ALL MODAYAS fit for nothing but EATING KAVUM thrown at us … when he wants to go into hiding to repeat his TREACHERY!

    However, I would like to remind this SHAMELESS UNDERCOVER EELAMIST, now EXPOSED in ALL HIS AWFUL NAKEDNESS, that it is these VERY SAME “Sinhala Modayas” that OUTWITTED and OUTFOUGHT the self-declared “Highly Intelligent” Eelamists sending “Unceasing Waves” of their Brainwashed SunGod Followers to their UNMARKED GRAVES in the STINKING MUD along the banks of the NanthiKandal Lagoon!

    Now, as we all know, NOT ONE LTTE killer can be found to ADMIT membership in the LTTE, or BOAST of their CRIMES; they are now ALL BECOME WAILING VICTIMS of others!

    Yes, with our KEEN MINDS and our MARTIAL SPIRIT moderated and brought into balance by our great tolerant Buddhist faith, we are often SLOW to use ALL THE SKILL & WILLPOWER that we inherited from our warrior forefathers.

    However, when we are SUFFICIENTLY PROVOKED, those who UNDERESTIMATE US have NO CHANCE of PREVAILING AGAINST US. This is the LESSON to be derived fromSri Lanka’s history of RESISTANCE over 400 years of European Colonial Invasion of our Motherland, UNMATCHED by any other nation, so afflicted any where in the world.

    We say to our ENEMIES, YOU can BEGIN the war, but WE will END it …. on OUR TERMS!

    ONE Nation, ONE People, ONE Destiny!

    BE THOU FOREVER, MOTHER LANKA!

    By Ananda-USA

    (Adapted from the S. Thomas College song)

    Patriots Young,
    Patriots Old,
    Patriots Staunch and True,
    Rally around the Lion Flag,
    The Red, and the Gold, in Hue!

    To Your Mother Lanka Sing,
    Patriots Near and Far!
    Loudly Let the Echoes Ring,
    For All We Have, and Are!

    Esto Perpetua!
    Esto Perpetua!
    Esto Perpetua!
    The Red and Gold Lion Flag, Forever!

  34. SA Kumar Says:

    In a democratic country people should have the RIGHT to support ANY political party – fully agreed but no one do like you -I had 23 avatars in Facebook during election time etc.. out $0. NO ONE paid me or gave me anything.

    not even one sinhala modayas won’t believe you that you paid this cost from your pocket !

    I know you won’t answer me because snake know snake leg ( Pambu ariyu panbin kaalai)

  35. Ananda-USA Says:

    Susantha,

    You said about “Facebook” Lorenzo

    ” You appear to be disappointed with President Maithreepala, as you have, up to now received no reciprocal fruition, for the quantum of Dollars thrown in. Dont Panic, be patient, You will be at least a Chairman of a Corporation. Wish you luck.

    IF YOU CAN USE YOUR CLOUT TO GET PRESIDENT MAITHREEPALA TO RE-SETTLE ALL THE SINHALES AND MUSLIMS BACK IN THE NORTH, THE NUMBERS YOU HAVE MENTIONED, THOSE WHO WERE ETHNICALLY CLEANSED, PLEASE DO SO.

    I hate to disappoint you Susantha, but this EELAMIST AGITATOR “Facebook” Lorenzo HAS NO INFLUENCE with Maithripala: ZILCH, NADA, ZERO! He is just BOASTING here that he is MS’s righthand man, while MS does not even know HE EXISTS! By hs own admission … he also a WAR GAMES expert working in CLOSE COLLABORATION with some undefined “Military Authorities”! Bah! ONLY in his IMAGINATION! At most he isa PAID PUPPET working for the EELAMISt cause!

    He is DRIVEN by his UNLIMITED EGO and his DESIRE to help the EELAMISTS, FIRST by OUSTING the UPFA GOSL that Chrushed the Separatists, Reunified our Motherland, and Developed it at BREAKNECK SPEED. He KNEW that if that is ACHIEVED his goal of an RACIST APARTHEIED EELAMIST BANTUSTAN for Tamils Only WILL NEVER BE ACHIEVED! So, he did EVERYTHING POSSIBLE first to OUST President Mahinda Rajapakssa, and now to SOW more CIVIL STRIFE in Sri Lanka.

    A WEAK, DIVIDED, CRAVEN and SUPINE GOSL is just what the EELAMISTS NEED to gain their EELAM! That is “Facebook” Lorenzo’s OBJECTIVE …. ANARCHY in Sri Lanka!

  36. Ananda-USA Says:

    Ah, “Facebook” Lorenzo is now a “Democrat”!!

    If you believe that, I have a LARGE SUSPENSION BRIDGE in New York that I want to sell you .. for cents on the dollar!!

    This REPROBATE “Facebook” Lorenzo is the SAME GUY who

    1. Advocated a militarycoup-de-etat in Sri Lanka against the UPFA GOSL … to achieve his ends. SOME “Democrat”!!

    2. Advocated white vanning of ALL POLITICAL OPPONENTS! Clearly, this is his version of “Democrazy”

    3. When I wanted TNA TRAITORS to be PROSECUTED under the LAWS of Sri Lanka, he advocated BUMPING them off ARGUING with me that it is MORE EFFECTIVE! Again, some “Democrat” now crying alout the lack of the Rule of Law under the UPFA GOSL!!

    … I can go on and on … ad infinitum …..ad nauseam!!

    Nah, this is an EELAMIST AGITATOR wanting to transform Sri Lanka into an ANARCHY so EELAMISTS can get their RACIST APARTHEID for-Tamils-Only EELAM!

    Sri Lanka Tamils should BEWARE … these EELAMIST TNA buggers are going to KILL the REST of your Children!

  37. Susantha Wijesinghe Says:

    SA KUMAR !! I have worked Jaffna long years back. I used to stay at Rosary Guest House on the Chinnakadai Fishing jetty road. Early morning I used to go when the boats are coming in. There are vendor women smoking Cigars monopolizing the Jetty. I used to buy Huge Crab for 50cents each. Lobster is free. There was a myth that selling Lobster was ill omen. When the boats come in, they throw the lobster onto the jetty. So if you are close you pick it up. A two foot Seer was about Rs.10.00. I get the Guest House Keeper to boil them and have it ready to bring home. I also stayed at the Hotel in town near the Hospital. I get the first room on the left. I cannot remember the name. I enjoyed the food.

    Iam not sure of the number of Sinhalese and Muslims there.

    Ananda ! I too thought so, and thought that our leg was been pulled. ZILCH.

    Fran I agree with you. Also I was drawing a red herring.

  38. SA Kumar Says:

    Susantha Wijesinghe
    Thanks when I was 20 years old (1983) my perent used 83 raits oppotunity for Western visa free entry for SL Tamil .

    Sri Lanka Tamils should BEWARE … these EELAMIST TNA buggers are going to KILL the REST of your Children!- We know very well since 1948 to now but only a Head of Sinhala leader can save us – I stongly believed that man have born that is MR but again TNA won 2015 now back to basic.

  39. Lorenzo Says:

    “We say to our ENEMIES, YOU can BEGIN the war, but WE will END it …. on OUR TERMS!”

    I say to Under-USA – DITTO!

    e.g. 8th January 2015. We didn’t start it but we ENDED it on OUR terms.

    On news, president My3 has granted POLICE powers to the armed forces. GOOD MOVE. No one should be allowed to DESTABILIZE and send PANIC waves through the country. It happened on Feb 2.

    Great minds think alike. What a fluke! ???

  40. Ananda-USA Says:

    Ado, Yakko “Facebook” Lorenzo,

    On the 8th of January, 2015, that DAY OF INFAMY when Sri Lanka’s Democracy was UNDERMINED & SUBVERTED, you didn’t END the war; you BEGAN it. The ENDING of that War LOOMS in the future, on the TERMS that WE, THE PATRIOTS of Lanka, WILL SET!

    DEVIOUS EELAMIST DROHIYA!

  41. SA Kumar Says:

    DEVIOUS EELAMIST DROHIYA!- so Naalai pirrakkum TE !!!, Velu you done rest in peace( after killing this many people how can you?)

  42. NAK Says:

    Lorenzo, Even in those coutries there are people who see the truth through the web of lie like lord Nesby and the defence attanche to the US embassy(Lt. smith I believe who puh pooed white flag story and promptly sent home)the problem is that they don’t get to voice their opinion. This should give them chance.

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