By Sam Panditha –
Dr Sam Panditha
The BOI applied for a 12 year Tax holiday for a company called HCL, requesting approval for exemptions of VAT, Dividend tax, PAL, CESS, Income tax, customs duty etc. Approval was needed this week from the Committee on Public Finance (COPF), Chaired by Dr Harsha De Silva. The Daily mirror summarises the laughable performance of the BOI.
“The shockingly poor practice of blindly granting enormous tax concessions to certain foreign investments without knowing their true cost came to light this week when the top brass at the Board of Investment (BOI) was summoned before the Committee on Public Finance (COPF), a parliamentary oversight committee.
The extremely poor state of affairs in granting tax concessions transpired when the BOI officials failed to justify why HCL Technologies, an India-based tech company, which already has commissioned operations in Sri Lanka, should be granted a slew of tax concessions spanning more than 10 years including an exemption from the income tax for 17 years, with final five at half the rate. “
The entire meeting is recorded and available to download.
I recommend all to watch this video, the BOI performance was shocking.
Chairman COPF Dr. Harsha asked a simple and the basic question needed to evaluate the request. “You are asking the COPF to grant a 12 year total tax holiday. If this was approved, what is the tax benefit that would be given to the company and the foregone tax to the Government”.
In Sherlock Homes parlance- “Elementary my dear Watson”!
At the meeting the BOI was represented by the BOI Chairman and 6 other BOI Directors. None of them were able to answer this simple and vital question. The BOI Chairman was even unable to distinguish between revenue and profit. All kinds of excuses and irrelevant facts were presented by the Chairman .
Dr Harsha asked Is there anyone here to give an answer. What is the Tax exemption sought – Is it Rs. One Mn, 5 Mn, 1 Bn, or 500 Bn? It was like addressing a bunch of kindergarten kids. As the BOI was unable to answer, Dr. Harsha De Silva refused to approve the request.
සමාගමකට අවුරුදු 12ක බදු සහනයක් දෙන්න රනිල් පාර්ලිමේන්තුවට දාපු යෝජනාවට අනුමැතිය දෙන්න හර්ෂ බෑ කියයි!
Unable to get the very basic information- Dr Harsha gave additional time for the BOI team to go to a Committee room, call BOI office staff -find the information and come back to the meeting. BOI Chairman said he is going to call the Company HCL to get the figures. If the information is to be obtained from the Company-then what do you need a BOI for?
After the “recess” the BOI team came back and said they contacted the company and the tax benefit is Rs 23 Mn. When Dr Harsha further questioned BOI said it is not Rs 23 MN but USD 23 MN and it is calculated for 10 years, while the application sought is for 17 years.
A further shocker- not knowing the benefit calculated is in Rupees or USD and whether the calculation is for the 17 year period requested or 10 years as claimed as calculated.
We must applaud Dr. Harsha the responsible Economist/ Politician for his intelligence and patience. After the recess, Dr Harsha was shocked at the incompetence. He bluntly stated “This is embarrassing Chairman. This is not how to run a BOI. We have given you 1.5 hrs to come with the figures- You are embarrassing the Government, coming here asking a massive tax break for 17 yrs. Can you run a county like this Chairman? Even a tea boutique is run better. You should feel very-very bad and be ashamed. This is not professional, this is not how to conduct official business. In my entire career, I have not faced such a useless situation like this”
The Chairman was blaming his staff. The additional issue we must address is what was the seven other BOI Director level staff at the meeting contributing? None of them had an answer to the FUNDAMENTAL question. Why did they come there wasting Government fuel?
Some staff tried to justify the huge tax concession on the grounds that the Company employs over 1000 staff and pay good salaries. The current dire economic position in the country and Bank interest running to 30% many local companies are crashing. Entire construction and real estate sector is collapsing as Housing Loans are 28% and building materials have jumped 400%. Companies face power cuts and drop in consumer purchasing power due to on-going hyperinflation. Thousands of jobs will be lost. No tax holiday is even considered for thousands of local companies facing closure/ bankruptcy. They are forced to pay the increased VAT and other taxes. In this situation, should we grant $23 Mn tax holiday to a profit making company that enjoyed huge tax benefits in the past as a BOI Company? We should offer tax holidays to 1000s of local companies facing bankruptcy.
Most of the senior BOI staff is appointed not for their qualifications, but due to political patronage. When one checks the background of almost all Chairmen and senior officers the key qualification to hold the position was political patronage. Their CVs show for over 15 years they have held Chairmanship in many other Government entities, Ambassador positions etc. Their specific competence and experience related to Investment promotion are in doubt. The main BOI function is to give concessional Government lands on lease as incentives for Investments- to friends, and continue giving tax holidays on the pretext of bringing foreign investments. Most of the real estate/apartment projects are termed BOI projects. They import steel, ceramic ware and electrical fittings duty free and make a huge profit selling the apartments. Termed BOI projects they may also get duty free Vehicle permits. This BOI status to construction companies should be stopped. It places the small scale apartment/house builder at a huge disadvantage and also results in the Government losing the tax on locally sourced steel, sanitary ware and electrical fittings.
The Blunt concluding remarks from Dr Harsha De Silva on the BOI Chairman is sufficient for him to tender his resignation (along with the seven Directors attending), or the responsible Minister/ President to sack them immediately.
The icing on the cake was that the BOI Chairman is also in charge of getting investments to the Port city. God help us! Dr. Harsha asked what the investments are pending for the Port City. Chairman replied- “we are trying to get a foreign Private Hospital and a Private School to be set up there”. There is ample free Government land in and around Colombo to house a foreign funded private hospital or school to be set up. There was no need to resort to the highly expensive creation of the sand mined and filled port city and the resulting huge environmental damage, to set up a hospital and a private school. The Port City will be the biggest WHITE ELEPHANT we created and with this type of leadership- it is doomed!
The BOI Chairman and 7 senior Directors asking for a USD 23 Mn tax break for the Company (estimate given by the Company itself), without BOI having calculated the tax to be foregone, is shocking. One could even assume the Company has given significant financial incentives to the BOI staff to present the case and get their tax benefit.
Just 8 months ago the previous BOI Chairman resigned on the uproar of appointing 29 staff with salaries over Rs 700,000 a month. Sunday Times summarised as follows: “This team will comprise 29 specialised personnel and suggested to offer attractive remuneration packages in line with the market rates with specific performance targets,” it said. Attached were job specifications for each post along salaries and allowances going up to Rs 700,000 a month. This was approved by the Cabinet, therefore granting the BOI permission to proceed.”
The way the Tax holiday was presented- we have suspicions if the Company paying someone in BOI to save $23 Mn in tax? BOI companies are granted tax holidays when the initial investment agreement is signed and the tax holiday is for a fixed period. May be every company with the connivance of BOI staff, apply for extended tax holidays. This is fraudulent. The BOI should release the details of companies granted with extended tax holidays in the public interest.
Do we even need a BOI? Foreign investment would reach countries that have a comparative advantage in investing. Sri Lanka starts with a huge disadvantage. We have the highest number of public holidays and low worker productivity is an issue. We have the most stringent labour laws favouring employees, and it is difficult to fire a non-performing and cheating employee. We have the highest electricity (and water) tariffs in the region. Traffic jams and unproductive time spent in traffic. Logistics a nightmare- shipping, customs and approvals all ask bribes.
I think Dr Harsha De Silva should do a different cost/ benefit analysis next time. The cost of funding the BOI (huge salaries, expensive rent, vehicles and other costs) and the benefit from so called “foreign investments”. It appears that the benefits are even negative as without any justification tax holidays are extended for reasons we all understand.
Raj-UK / October 7, 2022
Thanks Sam P for the exposure. What a bunch of lotus eaters earning fat salaries. The entire lot should tender their resignation, if not, sacked for incompetence. Corruption & cronyism were always suspected at BOI but at least now, I hope Ministers like Harsha will start reforming these parasitic departments. In fact, do we need a BOI? If I am not mistaken, it should be the job of the trade secretary of the respective embassies, supported by a delegation from the Ministry of Trade if necessary.
A few days ago, a recently retired Sri Lankan Air employee told me that an empty plane is sent to India which returns, not with people, but with a full load of aviation fuel. If that is so, it can’t be a viable option for fuelling aircraft by a state enterprise that is already haemorrhaging money. Wonder if Harsha & Co. are willing to look into this as well?
/
chiv / October 8, 2022
Mahila/ Raj Amazing isn’t it. The rot starts from the top. With such competence it will be surprising to see Sham Lanka not bankrupt. This was a random act and still not sure whether there will be any change in BOI. Is it true Harsha quit to give the post to Prof Charitha?? Before it would have started with Basil getting his share / kickback and passing it to BOI with a hand written note for approval.
/
old codger / October 8, 2022
That video exposes the complete incompetence of high state officials. They simply cannot understand such a simple thing as cost-benefit analysis, but have been appointed chairmen/CFO’s of large organisations. These guys may wear ties and sharp suits, and probably even have Master’s degrees (paid for by us). They cannot understand, or are not prepared, for a simple question, which Harsha tried in both English and Sinhala. This is why the country is bankrupt.
Public appointments should be ratified by a committee of private sector experts, half of whom should be foreigners.
What is even more revealing is, that of the 15 or so officials who identified themselves, all were from a particular community. Is this sort of tie-wearing incompetence connected to the fact that mediocre individuals from this community get preference in campus selection even over brilliant candidates from other communities? Is it not time to change selection criteria? There are people from this community who are capable of performing, but they join the private sector, like Harsha himself.
/
Raj-UK / October 8, 2022
OC
BOI chairman had to bring his entire board of directors to the hearing when he alone, or maybe his financial officer, should have been enough to answer the questions. What a waste of time. In UK too, such public commissions question politicians & heads of Dept. but never have I seen the entire board being present, it would never have been allowed. The Chairman should have been briefed & maybe he could have his financial officer by his side if he is not a ‘numbers’ man but what a joke to have the entire sorry lot present & still unable to answer some basic questions. The grovelling was pathetic. Certainly, their credentials are questionable but, assuming they are all products of SL Universities, there is a serious question about the level of our education system. As for lethargy & incompetence, it is the result of overstaffing, bureaucracy & cronyism. At least now, somebody should start cracking the whip.
/
cugan / October 9, 2022
Its not their fault the system being created by leaders after leaders. Sinhala only,standardisation, side line the talented ones,not looking for quality the quantity consists of SB.
It’s like running kassipu kade. Back door buissnes from appointments to do any buissnes, or grab lands,sand minning, build hotels,….list may be high, we had finance minister through the back door,not even elected, but Soorawamsa (lemon puff) knows the arts of fooling the super69 ,he said if basil here the fuel prices will be down.
Then came the oldest and once strong party of UNP ,don’t even secure single seat .don’t think RW would have thought no chance of be a executive prez.
What a crazy country.
/
old codger / October 9, 2022
Raj,
“assuming they are all products of SL Universities, there is a serious question about the level of our education system.”
The system is OK, but most of the products are not interested in learning, but only in passing exams.
Thankfully, that Paediatrician cum geologist cum food scientist cum historian “Dr” Padeniya is out of our hair for the moment. The guy claims to have studied in UK! So, even a British education can’t change these guys.
/
chiv / October 9, 2022
Raj , as I mentioned before Lanka is not just economically but politically
intellectually, systemically
morally, religiously ………. BANKRUPT. These are not acute, but years of dysfunctionality and failures. Few who are aware have either denied or enabled.
/
leelagemalli / October 9, 2022
Dear OC,
.
This is not limited to BOI, same everywhere. I don’t believe universities are better. University ranks sunk recent years putting the nation a way behind those in like minded countries.
Each time entering the country, I notice it myself, immigration officials, taxis, hotels, from the point of entry. People are not trained to be professional. Some srilanken airline stewardesses behave angrily if passengers would demand anything also in emergency situations.
–
If the Rajapaksas had a brain, they had the opportunity to start a new beginning. This nation did not give a chance to others, but to them… however, what they did was, no different to a fox became the guard of a poultry farm.
They only wasted precious time and filled their pockets. Even today, people are not strong enough to throw stones at the criminals in public. See how they gathered on a Kalutara stage today? If Mahinda Rajapaksa is wearing a dress to cover his body, will he be able to face those people and their eyes if he is honest? If my great parents would have been alive, they would have shared me, ” my dear son, shamelessness of some are in their genes”:
/
Lasantha Pethiyagoda / October 11, 2022
The BOI is only a wee little tip of an iceberg that has myriad protrusions that have made large holes in the sinking ship that is sorry lanka. The utterly corrupt rascals that appointed these dimwitted clowns to high positions must also be swept away in a people’s tsunami before too long. Elections will merely bring another set of vermin that will appoint more crony dumbwits. A full blown revolution is the only way out of this quagmire. The educated intelligent and committed youth will need to take back their country from the oppressors. Mark my words.
/
Amrit Muttukumaru / October 9, 2022
Dr Sam Panditha
1) Dr Sam Panditha must be thanked for his exposé of the PATHETIC conduct of the BOI which comes as no surprise.
2) Let’s not carried away by the commendable doings of Dr. Harsha de Silva in this INSTANCE in relation to his role as Chairman of the Parliamentary Committee on Public Finance (COPF).
3) As pithily observed by a witty party some time ago “bale thiyanakota mole naha mole thiyanakota bale naha”
4) This applies to a plethora of politicians, bureaucrats and professionals in this country over the years. This in particular applies to Chartered Accountants/Auditors who are the first and last line of defense against any form of corruption which involves FINANCE.
5) There is no better example of BROKEN Yahapalana promises than the OUTRAGE demonstrated at a press conference by SJB professionals Dr. Harsha de Silva and Eran Wickramaratne in the run-up to the 2015 presidential election in regard to Casino, Drug & Ethanol Mafias https://www.youtube.com/watch?v=_FkVBvpBEMY (11:15 onwards).
(continued below)
/
Amrit Muttukumaru / October 9, 2022
Dr Sam Panditha (continued)
6) The egregious Central Bank Bond Scam was unleashed on the country under the watch of not only then PM Ranil Wickremesinghe who was Minister of Policy Planning and Economic Affairs but also a host of SJB stalwarts which included Dr. de Silva who was Deputy Minister of Policy Planning and Economic Affairs under Wickremesinghe. Readers can gauge Dr. de Silva’s obvious embarrassment https://www.youtube.com/watch?v=hL0p8o580K4 (21:26:23 onwards) when responding to a question from a journalist on his controversial ‘FOOTNOTES’ on the COPE report in respect of the bond scam.
7) Did not the Yahapalana government in which SJB leaders such as Dr. de Silva figured prominently in effect FACILITATE money laundering when it repealed the Exchange Control Act No. 24 of 1953 and brought into law the new Foreign Exchange Act No. 12 of 2017?
8) A precursor to the dangerous Yahapalana inspired Foreign Exchange Act was the ‘invitation’ issued by then Finance Minister Ravi Karunanayake through India’s ‘The Hindu’ of 5 October 2015 to “Sri Lankans and Indians who had to take back their deposits from banks in Switzerland to place their funds in Sri Lanka”. He had assured that “No questions would be asked”
‘Place your money in Sri Lanka’ – The Hindu. What was Dr. de Silva doing at this time?
(continued below)
/
Amrit Muttukumaru / October 9, 2022
Dr Sam Panditha (continued)
9) As if these were not bad enough, then CBSL Governor Dr. Indrajit Coomaraswamy under whose tenure this dangerous Act became effective, had the AUDACITY to cite this Act to justify CBSL inaction to determine LEGITIMACY of offshore accounts in tax havens held by Sri Lankans named in the ‘Panama Papers’:
10) “The time period prescribed by the Foreign Exchange Act No. 12 of 2017 to conclude investigations under ECA expired on 19.05.2018 as stipulated in the Foreign Exchange Act No 12 of 2017. These investigations also lapsed on that date.”
11) Does anyone recall the dubious “$ 3.85 billion oil refinery in Hambantota” and the 2017 Volkswagen vehicle assembly plant in Kuliyapitiya which turned out to be a HOAX? There was even a “ground breaking ceremony” http://www.dailynews.lk/2017/01/04/local/103762 for the Volkswagen plant! Did not Dr. de Silva have some involvement in the Volkswagen project?
12) Could it not be said that if only the so-called Yahapalana government had fulfilled even half the PROMISES it gave the voters, the country would not be in the precarious plight it now is in respect of its – economy, social stability, widespread corruption and public accountability?
Amrit Muttukumaru
/
chiv / October 12, 2022
OC is it true Arjun Mahendran and the rest have been vindicated by courts ??
/
old codger / October 12, 2022
A wee tip to the doughty defender of public finances: go read a newspaper, you are way out of date. There was no “bondscam”, egregious or not.
“Colombo High Court Trial-at-Bar has accepted that charges cannot be maintained under the Public Properties Act against former Governor of the Central Bank of Sri Lanka (CBSL), Arjun Mahendran, Perpetual Treasuries Ltd, Arjun Aloysius and the other defendants over the case on Treasury Bond auction of 27 February 2015.
The order was issued by a two-thirds majority of the three-member High Court bench which consisted of Justices Sanjeewa Morayas, Damith Thotawatta and Namal Balalle.”
(Ada Derana yesterday)
/
chiv / October 12, 2022
OC, I figured as much mainly because the whole story was created and fed by crooked Rajapaksa cabal. (pathological liars and crooks by birth). But hats off to you for being steadfast maintaining “there is NO BOND SCAM “.
/
leelagemalli / October 9, 2022
Dr. Pandita,
Thanks for the article. OC and I have already discussed this issue last week. All this is not new to Sri Lanka. If such presidents had caught the attention of Europe or Singapore, direct board action would have been relegated to a later date. That is the difference between our sinking country and progressive countries.
:
This is common everywhere in Sri Lanka. Airport Services, SriLankan Airlines and other banking sector entities, “either the chairmen or the trustees are not taking it seriously”.
.
They attend the meeting not prepared enough to solve them in a session. Above all, as we all know, the so-called “Supreme Parliament swallows tax payers’ money, but consistently fails to reform anything. The elephant is in the room and no one says a single word about it. Then it is easily “misperception of the people”.
–
This is why I have repeatedly said that experts should have worked to rebuild the nation as the Singaporeans and Germans did immediately after the war. No excuses should be given to anyone, they should be trained for strict law and order. People should demand it from themselves…. Yellow Pets and other artists and people in the spotlight in Sri Lanka can take the lead in rebuilding the nation for a better future.
Disipline is everything for any country that rose from scratch.
/
Mahila / October 7, 2022
Sam P.,
No wonder, that people of this resplendent isle has to undergo so much of torment, indignation and distress, over the past few years, due to public servants of this calibre occupying positions in service, which They were totally unfit to represent!!??
Totally unfit bigots!!!??
Quo Vadis SL???
/
Thiru / October 7, 2022
I am sure all the the State owned Enterprises running at massive losses are run by thieves and crooks siphoning off the money.
/
Simon / October 7, 2022
The most interesting scene in this meeting was the way the Chairman and the rest of the “GANG” were making a frantic attempt to hoodwink and avoid the answer to the main question. (1) The Chairman started recording his career background and stated why he has come to S/L to help the country at a time of economic difficulties. (2) Another in the second row started analyzing the employment opportunities that would be created and in fact, some of the high-paying jobs have already been given.
I am glad that MP Dr. Harsha de Silva immediately noticed the attempted “Coupe” and said: ” We are not asking for all those benefits and career records of you people. What we need to know is a simple answer as to how much you are asking us to write off as Tax Grants which is a “Cost” to the Government for 12 years, at 100%, and at 50% for the next 05 years”. He gave “1/2 hour” to get that figure. But the Chairman said I have brought all those who could work that out, but the figures are not available in our records. So there were compelled to get the figures from the HCL.
/
leelagemalli / October 9, 2022
This is the country where criminals like Johnston and Aluthgamage are still roaming around as social thugs.
Sri Lanka’s mainstream media is also responsible for it. Their reactions are like a sieve with large pores.
All of us in CT must question why society has sunk to such horrific levels. People who live in the country more than others. They have experienced it and are more responsible for the mess.
Either they are in sleep mode, or what some do, just don’t see enough.
–
Neither Johnston nor Aluthgamagage in England, Germany, France or any other country could return to that position. People and the mainstream media cut their throats right there.
–
Is not that pot calling kettle black?. Aluthgamage, who was a money laundering fraudster, is emerging as the main interrogator today. He does all this in the Supreme Parliament.
/
Simon / October 7, 2022
Doesn’t this record (above video) remind us of the “COMEDY” – “Vinoda Samaya” series of Samuel Rodrigo, Berty Gunathilaka and Anestly Dias (all deceased) represented today by these BOI “BIG WIGS”? This entire “Out Fit” must be disbanded and as suggested by “Ajith” given over to Foreign Affairs and the Trade Ministry.
In continuation, I would ask the readers to take a look at the meetings of the COPE during the Yahapalanaya under the Chairmanship of Sunil Handuneththi and “Saubagye Dekma” under the Chairmanship of Prof. Charitha Herath.
You would notice same types of “TACTICS” of “BULL SHITTING” were adopted by the “Big Brass” summoned to answer the questions that the Auditor General had raised. In those instances too, all the “Top Brass” (including those at the Govt. Banks) resorted to the “Coupe” of “DISTRACTION” from the main question and hoodwink the questioning authorities. In very many instances, I must say both Sunil Handuneththi and Prof. Charitha Herath “GOT CAUGHT” unlike Dr. Harsha de Silva in this case of BOI.
/
Mallaiyuran / October 7, 2022
Is that because of this issue Harsha quit? Harsha should have done his investment evaluation when Yahapalanaya approved the Pong Cing development. Why didn’t Harsha talk when Evil Ranil bragged that it is he who saved the Colombo Pong Cing?
/
Mevan / October 9, 2022
Dr Harsha – Thankfully – did not resign from the Finance Committee. He did resign from COPE to give his place to Prof Herath – who was discontinued, apparently because he acted fairly as the Chairman of the last COPE.
/
Alpha / October 8, 2022
For export companies, giving duty free concessions for imports is understandable. For profit making Companies, there is no need for tax holidays unless there is a development period where the Company will have to suffer losses.
The time is now opportune for this country to rethink all the strategies for economic development and look for “out of the box” solutions.
For example, many countries now practice employee payments based on hourly time records maintained by the employee. We have, in this country, some categories such as doctors who refuse to even sign in and sign out when they come to work.
/
Pundit / October 8, 2022
I am disappointed that Harsha did not ask what the total investment of HCL in Sri Lanka was. It was later said to be USD 10 Million. HCL’s total revenue in 2021 had been USD 11.18 Billion, and BOI is more than happy to make special concessions and tax exemptions for a paltry USD 10 million investment in Sri Lanka. Meantime Sri Lankan entrepreneurs who have been toiling endlessly will be taxed 30% from November, which is the reason for the frenzy to get this sanctioned by Parliament. Shame on JKH
for being part of a shady deal to defraud the citizens of this country.
/
cugan / October 8, 2022
These directors/officials tender their resignation, then either ambassadors or head of Govnt establishments.
At Sathosa garlic, sugar fiasco, had proof of current minister Bandula involvement no action,
Thiru Nadesan $125m,Nirupama visit the CID and the headlines then
Indian buissnes man given the suit case of cash to BOI hierarchy at the car park of 5star hotel.. .
In SL who follow the relegion may be the elephants (cruelty )
This only financial, murders, arrest them put them on the cells without any charges,
Destroyed the education, there was a time few of my uncles being hired by West African countries to teach
Pls let ourselves to look after our own affairs
/
Mallaiyuran / October 8, 2022
India wanted to lot of things in Langkang. It wants to expand oild supplies. It wants to expand Colombo Habor. In want to built LNG & Coal electricity Generators. It want to buy Sugar corporation plant. It want to many Railways projects. It want to operate Matala Air Port. It wants to operate Palali Air Port. It wants to operate & expand KKS Harbor. It wants get into Solar, Wind power projects.
/
Mallaiyuran / October 8, 2022
Thanks Firefox, for posting my above comment before I finish.
None of them are approved by Appe Aanduwa though all are good investments for Langkang. Now where did this new HCL invention BOI is coming out with?
/
ramona therese fernando / October 8, 2022
Yes, thanks Dr. Sam Panditha for the reality check on what’s been going on in our business communities for so many decades. Dr. Harsha De Silva is a God-Send! May he be safe and protected🙏. Country can never progress otherwise. Aren’t we so ashamed as a nation to see all of this gross misuse of country resources, assets, and man-power of the hardworking-struggling-&-starving-Lankan-Masses? And this kind of culture has run for several generations and become ingrained into offspring-DNA, such that the business community and their families feel a great sense of righteous entitlement. Just see how they live.
/
leelagemalli / October 9, 2022
RTF,
https://www.youtube.com/watch?v=L26qvIYO0L4
–
/
Bert / October 9, 2022
“Dr Harsha was shocked at the incompetence.”
Not just Dr. Harsha most that watched were shocked and disgusted. How can a chairman come to a hearing along with his key team and be unable to say the cost of what he is asking for. Worst was his excuse for not been prepared, that he was new on the job. That too was not true because 10 months was more than enough to come to speed.
/
Alpha / October 9, 2022
I think we are missing something here. I do not think we should be enticing investments with tax holidays etc.
However, in this case looking only at the taxes foregone by the country does not seem to be right. For instance if the profits are Rs. 100 million, the tax foregone is Rs. 30 million. If the profits are Rs. 200 million, then the tax foregone is Rs. 60 million. Sixty being double of thirty does not mean that we are unhappy with the profit of two hundred. More profits they make means more revenue.
For us maximising revenue is the most important thing. The cost is irrelevant because the revenue overtakes it all the time.
Nobody in the Finance team thought of asking for Revenue figures (Foreign Exchange earnings). Employment of 5000 is very important. Also nobody thought of technology transfer into the country and the impact it would have on Sri Lanka developing markets overseas for IT.
Maybe BOI and also the Finance Committee still have a lot to learn.
/
ramona therese fernando / October 9, 2022
Alpha,
–
They only employ 1,700 Lankans. Rest of the revenue goes on employing 3,300 foreigners.
–
Profits of say 600-million, must be going into personal bank accounts of less than 10 persons- they are not sure, or won’t divulge. No proper accounting is kept for it will go against all modern international standards.
–
In the meantime, Motherland has to be grateful for crumbs off the Indian capitalistic machine. Pay your taxes, I say, for mere Indian technology transfer for a few paltry jobs is crushing Sri Lankas ability to innovate along her own lines and keep profits for her people…..perpetually dumbing us down, and for Indian trillionaires to line their pockets over even their own masses.
–
This mass exploitation will take hold if we don’t crush it in the bud! More honorable it will be for the Motherland if the 1,700 take up the amoday and mamatee and grow rice….the more they stick on as IT personnel, the less the rice is grown for the Motherland; the more the rice importation from India…..vicious cycle indeed!
–
Do the honorable thing…..Pay the taxes or get out!
/
ramona therese fernando / October 9, 2022
Having said that about the Indian company, it is seen that our Lankan companies are no better.
–
Whole system needs an overhaul! Glad Harsha De Silva is their to see to it. It’s either intelligent stringent capitalism where somebody speaks for the national Masses, or Rajapaksa capitalism where it was a fun free-for-all capitalism where foreign loans were up for vast gambolling at the expense of the Hardworking-Suffering-Lankan-Masses.
–
Process and procedure has to be implemented however lesser the money temporarily looks on the revenue sheets.
/
ramona therese fernando / October 9, 2022
Process and procedure for honorable capitalism have to be implemented, even if it means that lesser money shows up on the revenue sheets. Profits have to reflect wages, salaries, and taxation.
/
ramona therese fernando / October 9, 2022
Glad Harsha De Silva is there* to see to it.
/
cugan / October 11, 2022
Should check on the past too,glad that Harsha knows the knowledge and smart,imagine if Pothuwa or even Rw it would have been given free ride
We followed Singapore, but Hong Kong dont have.space at all,but we have vast empty lands why do we need port city though, we have seen two of the Pothuwa to.attract tourists riding the go cart,the Colombo already congested and grid lock but the BOI says it’s plan to build school and the hospital
Pls in the north we have plenty bare land rather.than building vihara build the hospitals in the name of great Gautam, giving employment and up lift the lively hood poor victims of the state.
/
old codger / October 10, 2022
Ramona,
Honorable Capitalism? Good luck. I am looking for honest burglary and victimless murder.
/
ramona therese fernando / October 10, 2022
Old Codger,
–
Even burglers and murderers have their grades. Scandinavians are top of the range and know the art of honorable capitalism. Indo Chinese are good too. Theirs is a socialized capitalism. Japan is excellent in its full-blown capitalism. US is trying its best. Our fellows on the other hand are excessively stupid and lack finess.
/
Alpha / October 10, 2022
Ramona,
If only 1700 Lankans are being employed, then the BOI should be again pulled up for giving wrong info.
Wonder what happened the next day in Parliament. Are you privy to that info.
/
ramona therese fernando / October 10, 2022
What happened next day in parliament?
/
Bert / October 10, 2022
How long has this speaker been in parliament?
https://www.youtube.com/watch?v=nv4L7XE_qWQ
What a waste of public finance.
/
watcher / October 11, 2022
Former BOI that came from Aus was hired directly by Mahinda and no due diligence was done since that person was not qualified for the job since he got lucky with a patent in Aus and then company went public and he was wealthy. WTF, is this how our idiot Mahinda do business? Aus guy also started the rot and basically destroyed the BOI. We have heavy industry that was set up JR’s time in SL and earning all foreign currency and doing business in global markets including NATO. Our Agriculture Research is world class and on heavy demand and employ more than 200 women in deep south.. Our freight cost from SL to Aus gone from $US2000 to US$ 10,000 creating uncompetitive in global markets. Millions of families money was invested here with million dollar revenues. We brought these to SL for our people and now my brother wants out since he is so stressed and blame the BOI . Like me we were all overseas educated and run global business and my bother was involved with designing first north sea oil platform for a US oil company and got so many patents. Question is where do we go from here ?
/
Pundit / October 11, 2022
I understand the proposal put forward by the BOI received parliamentary approval the following day. Harsha playing Mr. Nice Guy is of little benefit to the tax paying citizens of this country who are being ripped off time and time again. He needs to be able to put his foot down and assert himself, or to put it bluntly – look for another job.
/