Please get back the dollars and not increase taxes on people

Dear Honourable Sirs,

This is a golden opportunity yourselves and the relevant ministers assisted by an honest, efficient, knowledgeable oversight team should immediately address to expand an honest enterprise society. 

The shock of the Panama papers leak is yet to be digested. There were many corrupt corporates, controlling interests and allied politicians who had sent the country’s enormous portion of wealth and income abroad as reconfirmed by the latest reports. 

The colossal sums of monies were grabbed from the common man, via exchange rate, interest rate manipulations, stock market pump and dump, reduction of public float, de-listing and various purported investments overseas siphoned off for the benefit of a corrupt few. 

A Sunday paper of 17 April states: “…Top officials of the Finance Ministry have told Reuters that after May Day in two weeks’ time, the Value Added Tax will be increased to 15% from the presently applicable rate of 11%.... Crucial areas which were exempt from VAT have been brought into the VAT net. All aspects of the telecommunications industry are now liable to VAT as are healthcare services. Thus telephone and internet bills will see sharp increases of over 15% overnight. Private healthcare, including the widely-used channelling services for medical specialists will also see sharp increases. …”

There should be no more taxing of poor people and the genuine enterprise sector as their monies in various forms have been taken away by a few. Therefore, it is imperative that those stolen monies are brought back to correct the macroeconomic crisis situation and for repayment of loans and development. 

The Sunday Times of 17 April states “….already a team are in Washington to beg for more funds from the IMF while the opposition is planning a series of protests against more and more burdens being placed on the people through taxes…” The IMF and other loans must be repaid in the short-term, reducing the debt burden. The country’s and the corporate debt burden must be replaced by equities. The PM is on the correct track in respect of Chinese loans to be converted to equity in PLCs. 

Another Sunday paper of 17 April states: “5 EU nations to reveal names. They will get together and share information”, therefore we too should get together with other countries and authorities and devise a mechanism to quickly bring the monies back to our country.

Compulsion of circumstances, and a cruel ethnic conflict engineered at that time by political-business combinations to control the country’s fortunes, led to the assassination of PM S.W.R.D. Bandaranaike. They carried on continuously with only few periods where they were subdued.

President Maithri and Prime Minister Ranil won on the pledge of eradication of corruption, abuse of power and radical change to Yahapalana Government. The mafia seems to be yet powerful enough to thwart all the good intentions and promises made by the Yahapalana Government. The ideals of the Common Front sphere headed by late Ven. Sobitha Thera, former President CBK, Minister Rajitha Senaratne and a host of civil society organisations appear to have been subverted. None of the big culprits have been apprehended and their ill-gotten wealth seized and the victims compensated to enrich the country and enhance its image.

We don’t need to put them for long periods into jail (people’s cost), provided they bring the wealth and income generation spirited away under various ruses. Approvals were granted by officials in special cases for investments abroad with conditions of accountability and bringing back good rates of return. Have these been followed honestly? The estimated $ 35 b of Sri Lanka’s money taken abroad would have enriched the country’s economy enormously. Some people had to keep their legitimate earnings and profits abroad, as the PM stated in Parliament. They must be encouraged to bring back undoubted talents and expertise, and invest their monies. A competitive rupee, low interest rates and an efficient financial and administrative infrastructure is essential for vitally-needed rapid export growth. Value added services, manufacturing, tourism, plantations, etc. (A newspaper in July 2008 after an extensive interview ran the headline “Propped up rupee causes deterioration of export environment: Vignarajah”.) The corrective measures also greatly support the equities market and investors in the enterprise sector.

Abundance of dollars siphoned away when brought back will finance a glorious revival and a renaissance. Sri Lanka can again regain its glorious values and prosperity of the late 1940s and early 1950s.

Yours truly,

K.C. Vignarajah, acting in the best interests of the investing public and the country