http://www.lankaweb.com/news/items08/051008-4.html
http://www.themorningleader.lk/20081008/letters.html
http://lankadailynews.com/2008/10/general-fonseka-absolutely/
The Centre for Policy Alternatives has issued a communication saying that they do not approve the personal views of General Sarath Fonseka which are exclusively within his own perspective based on his personal judgment.
It is none of CPA’s business or anybody else’s to interfere with Sarath Fonseka’s fundamental right of expression of his views which has been guaranteed to every citizen by the Constitution of Sri Lanka.
Right from the colonial days, Tamil politicians have been communal minded and chauvinistic by designating all their political parties with the word ‘Tamil’ up to this moment, whereas the Sinhala people never designated their political parties as ‘Sinhala.’ For example, the Sri Lanka Freedom Party, the United National Party, Jathika Hela Urumaya, Janatha Vimukthi Peramuna, etc.
A tragic situation has been created in the country by institutions like the CPA where Sinhala people cannot say that this is the country of the Sinhala people depriving their birth right despite the fact that Sinhala people are naturally humane and rational to accommodate all the other minorities to live in this country in harmony. In addition, the constitution of the country provides civil liberties and justice to every citizen alike without any discrimination.
The radio does not play Nanda Malini’s song Me Sinhala Apage Ratai now. Why is that?
Prof. Sunil Ariyaratna’s lyrics in that song are his honest thoughts and Nanda Malini really meant every word of it when she sang it although she does not sing it now, possibly due to some personal restraints.
Can anybody deny the fact that the traditions of our country, the name of which is Sinhale as stipulated in the Udarata Agreement signed with the British in 1815, were inspired by the Sinhala Buddhist culture of over 2419 years?
We should be able to open our mouth and tell the whole world that this is the blessed country of Sinhala Aryan people. It is a fact. General Fonseka is absolutely right.
Jass Ranasinghe
Saturday, November 22, 2008
Wednesday, November 19, 2008
Why do Countries Violate the Democratic Rights of Sri Lanka
By Jass Ranasinghe
Articles by me as follows in the media, e-links of which are:
http://www.themorningleader.lk/20080806/focus.html
http://www.srilankaguardian.org/2008/08/why-foreign-countries-violate.html
http://www.lankaweb.com/news/items08/300708-5.html
I have frequently seen statements both in the print and electronic media by foreign countries, particularly by government officials of Western European countries and India, requesting Sri Lanka to go to the negotiation table with the LTTE in order to resolve the "ethnic conflict" which is, in other words, the LTTE’s claim for a separate state for the Tamils in Sri Lanka, the Tamil Eelam.
I have to state that I am neither a historian nor a political analyst but I strongly believe that I have the right to come out with my views as an ordinary Sri Lankan, sensitive though the issue may be.
The great chronicle
Sri Lanka has an explicitly documented history of more than 2500 years according to the Mahawamsa — the great chronicle of the kings of Sri Lanka. It is a historical poem written in Pali. It covers the period from the coming of King Vijaya of Kalinga (ancient Orissa) in 543 BC to the reign of King Mahasena. The first copy was printed in 1837 by George Turner, a historian and officer of the Ceylon Civil Service. A German translation of the Mahawamsa by Wilhelm Geiger was completed in 1912.
The Portuguese, the Dutch and the British invaded our country resulting in it being a colony of those countries from 1505, against the will of Sri Lankan citizens, till 1948. Sri Lanka became an independent nation in 1948 and is a democratic country to date. Literally, "democracy" is power of the people.
The idea of democracy has been derived as an anti-theory to ‘autocracy’ and ‘aristocracy’ which mean ‘power of a single ruler’ or ‘power of a superior group,’ respectively. This idea of ‘power’ of government is the privilege of the ruler. Accordingly, in an autocracy an all powerful king/dictator rules the country for his own pleasure, and in an aristocracy a privileged group rules over the lower classes, again for the benefit of the ruling group.
In a democracy it is the will of the majority of the people that is supreme and the elected government rules the country. This is the theory of democracy. Since all the people cannot in any meaningful sense govern a country, in practice, a ‘democratic government’ means a government comprising of a person or group of people at the top of the government elected by some form of voting system for a specific period to govern the whole country, enacting laws without making any distinction of the voters, irrespective of their political interests.
What is democracy?
Democracy is deciding on an issue by a majority vote. The only option left with the other groups is to seek justice under the constitution of the country if their fundamental rights are deprived or any other matter not consistent with the law of the country. However, those who are elected to govern the country, the government, should have a tradition to respect the law and civil liberties of citizens as enshrined in the constitution.
Let us see the role played by the so-called foreign countries who think that they have a universal right to interfere in the internal affairs of a democratic country — political or otherwise. I firmly believe there is absolutely no room for such blatant intimidation. They have to respect the democracy of an independent country.
The Sinhalese being 72% of the country’s population are the majority and Tamils being 12% are the minority. The Sinhalese are 72% simply because they have been living in this country for more than 2500 years whereas Tamils are 12% because they settled down in the north of Sri Lanka in the 13th century (www.localhistories.org/srilanka by Tim Lambert) despite the fact that there were invasions from South Indian Tamils from time to time in Sri Lanka’s history.
How can 12% of Tamils claim the north and east as a separate state of Eelam which is almost one third of the country and two thirds of the coast around the island? On what basis do these foreign countries dictate terms to us to negotiate our country with the LTTE?
Dominance
These countries do not care that 72% of Sinhalese have been deprived of some of their basic rights by colonial rulers prior to independence. The majority of the public sector employees were Tamils during colonial times with a handful of Sinhalese here and there. After independence, under democracy, the legitimate rights of the Sinhalese were gradually restored and integrated into the system. Why is this not respected and accepted as an element of democracy without making it a big issue?
Why are Sinhala Buddhists condemned as "Sinhala Buddhist chauvinists?"
It is the "Eelamism" propagated by Tamil nationalists way back in the 1930s in connivance with Indian politicos and colonial rulers that destroyed the co-existence of the communities in the country. This is a fact. The Tamils are the very people who propagated hatred among the people of this country by asking for a separate state.
Are those Western European countries so sure that Eelam (to be achieved by the LTTE) will be a democratic country where Tamils can live happily with their civil liberties uncompromised? Do they have any conviction that the LTTE has respect for democracy or human life irrespective of whether it is Tamils or Sinhalese?
Absolutely no. The LTTE Leader, Pirapaharan, is a psychopath who has no humane feelings even towards his own people or any respect towards democratic principles of governing a country.
An issue created
Foreign countries, having created an issue as an "ethnic conflict" have been asking a democratic government to go for negotiations with a ruthless gang of terrorists simply because a war has been perpetrated and innocent civilians are killed everyday by the LTTE with suicide bombers. These countries should be ashamed of themselves for stooping so low without conviction and without any regard to the basic principles of democracy.
In addition, it is the Tamil Diaspora that propagates Eelam saying they face torture and discrimination by the Sinhalese people simply because they want to create false propaganda that will enable them to emigrate to Western European countries. Being born and bred in Sri Lanka they have now become traitors to their motherland.
Historical facts
One has to read the historical facts contained in the Mahawamsa to understand the actual existence of Sinhalese and Tamils in Sri Lanka. I need to cite one significant incident from history prior to the independence of Sri Lanka, compiled by British historian Jane Russel as to how G.G. Ponnambalam of the Tamil National Movement in the 1930s attacked the Mahawamsa — the history pertaining to Sinhala Buddhists.
The inflammatory speech in 1939 attacking the Sinhalese and the Mahawamsa by him as the leader of the nationalist Tamils led to the first Sinhala-Tamil riots engulfing Nawalapitiya, Passara, Maskeliya and even Jaffna. However, the riots were rapidly put down by the British colonial government and did not lead to the terrible magnitude of post-independence conflicts. (Refer www.smso.net/Mahawamsa)
It was the nationalist Tamils in the colonial era and those after that who were responsible for creating the background for communal riots in Sri Lanka. They have reaped what they sowed, in consequence of which our motherland has had to suffer, unfortunately.
Articles by me as follows in the media, e-links of which are:
http://www.themorningleader.lk/20080806/focus.html
http://www.srilankaguardian.org/2008/08/why-foreign-countries-violate.html
http://www.lankaweb.com/news/items08/300708-5.html
I have frequently seen statements both in the print and electronic media by foreign countries, particularly by government officials of Western European countries and India, requesting Sri Lanka to go to the negotiation table with the LTTE in order to resolve the "ethnic conflict" which is, in other words, the LTTE’s claim for a separate state for the Tamils in Sri Lanka, the Tamil Eelam.
I have to state that I am neither a historian nor a political analyst but I strongly believe that I have the right to come out with my views as an ordinary Sri Lankan, sensitive though the issue may be.
The great chronicle
Sri Lanka has an explicitly documented history of more than 2500 years according to the Mahawamsa — the great chronicle of the kings of Sri Lanka. It is a historical poem written in Pali. It covers the period from the coming of King Vijaya of Kalinga (ancient Orissa) in 543 BC to the reign of King Mahasena. The first copy was printed in 1837 by George Turner, a historian and officer of the Ceylon Civil Service. A German translation of the Mahawamsa by Wilhelm Geiger was completed in 1912.
The Portuguese, the Dutch and the British invaded our country resulting in it being a colony of those countries from 1505, against the will of Sri Lankan citizens, till 1948. Sri Lanka became an independent nation in 1948 and is a democratic country to date. Literally, "democracy" is power of the people.
The idea of democracy has been derived as an anti-theory to ‘autocracy’ and ‘aristocracy’ which mean ‘power of a single ruler’ or ‘power of a superior group,’ respectively. This idea of ‘power’ of government is the privilege of the ruler. Accordingly, in an autocracy an all powerful king/dictator rules the country for his own pleasure, and in an aristocracy a privileged group rules over the lower classes, again for the benefit of the ruling group.
In a democracy it is the will of the majority of the people that is supreme and the elected government rules the country. This is the theory of democracy. Since all the people cannot in any meaningful sense govern a country, in practice, a ‘democratic government’ means a government comprising of a person or group of people at the top of the government elected by some form of voting system for a specific period to govern the whole country, enacting laws without making any distinction of the voters, irrespective of their political interests.
What is democracy?
Democracy is deciding on an issue by a majority vote. The only option left with the other groups is to seek justice under the constitution of the country if their fundamental rights are deprived or any other matter not consistent with the law of the country. However, those who are elected to govern the country, the government, should have a tradition to respect the law and civil liberties of citizens as enshrined in the constitution.
Let us see the role played by the so-called foreign countries who think that they have a universal right to interfere in the internal affairs of a democratic country — political or otherwise. I firmly believe there is absolutely no room for such blatant intimidation. They have to respect the democracy of an independent country.
The Sinhalese being 72% of the country’s population are the majority and Tamils being 12% are the minority. The Sinhalese are 72% simply because they have been living in this country for more than 2500 years whereas Tamils are 12% because they settled down in the north of Sri Lanka in the 13th century (www.localhistories.org/srilanka by Tim Lambert) despite the fact that there were invasions from South Indian Tamils from time to time in Sri Lanka’s history.
How can 12% of Tamils claim the north and east as a separate state of Eelam which is almost one third of the country and two thirds of the coast around the island? On what basis do these foreign countries dictate terms to us to negotiate our country with the LTTE?
Dominance
These countries do not care that 72% of Sinhalese have been deprived of some of their basic rights by colonial rulers prior to independence. The majority of the public sector employees were Tamils during colonial times with a handful of Sinhalese here and there. After independence, under democracy, the legitimate rights of the Sinhalese were gradually restored and integrated into the system. Why is this not respected and accepted as an element of democracy without making it a big issue?
Why are Sinhala Buddhists condemned as "Sinhala Buddhist chauvinists?"
It is the "Eelamism" propagated by Tamil nationalists way back in the 1930s in connivance with Indian politicos and colonial rulers that destroyed the co-existence of the communities in the country. This is a fact. The Tamils are the very people who propagated hatred among the people of this country by asking for a separate state.
Are those Western European countries so sure that Eelam (to be achieved by the LTTE) will be a democratic country where Tamils can live happily with their civil liberties uncompromised? Do they have any conviction that the LTTE has respect for democracy or human life irrespective of whether it is Tamils or Sinhalese?
Absolutely no. The LTTE Leader, Pirapaharan, is a psychopath who has no humane feelings even towards his own people or any respect towards democratic principles of governing a country.
An issue created
Foreign countries, having created an issue as an "ethnic conflict" have been asking a democratic government to go for negotiations with a ruthless gang of terrorists simply because a war has been perpetrated and innocent civilians are killed everyday by the LTTE with suicide bombers. These countries should be ashamed of themselves for stooping so low without conviction and without any regard to the basic principles of democracy.
In addition, it is the Tamil Diaspora that propagates Eelam saying they face torture and discrimination by the Sinhalese people simply because they want to create false propaganda that will enable them to emigrate to Western European countries. Being born and bred in Sri Lanka they have now become traitors to their motherland.
Historical facts
One has to read the historical facts contained in the Mahawamsa to understand the actual existence of Sinhalese and Tamils in Sri Lanka. I need to cite one significant incident from history prior to the independence of Sri Lanka, compiled by British historian Jane Russel as to how G.G. Ponnambalam of the Tamil National Movement in the 1930s attacked the Mahawamsa — the history pertaining to Sinhala Buddhists.
The inflammatory speech in 1939 attacking the Sinhalese and the Mahawamsa by him as the leader of the nationalist Tamils led to the first Sinhala-Tamil riots engulfing Nawalapitiya, Passara, Maskeliya and even Jaffna. However, the riots were rapidly put down by the British colonial government and did not lead to the terrible magnitude of post-independence conflicts. (Refer www.smso.net/Mahawamsa)
It was the nationalist Tamils in the colonial era and those after that who were responsible for creating the background for communal riots in Sri Lanka. They have reaped what they sowed, in consequence of which our motherland has had to suffer, unfortunately.
Monday, August 11, 2008
Holiday in Bangkok
We went to Bangkok for a short holiday from 29 July to 2 August 2008.
We visited the Grand Palace, Ayuththaya ruined city, Temples of Golden Buddha, Emerald Buddha, and the Reclining Buddha. The golden Buddha Statue is made of five and half Tons of 24 K gold.
Reclining Buddha Statue is 46 meters long and 15 meters high. This gold-plated Buddha image depicts the Buddha’s passing into Nirvana. It’s highly ornate and a genuine spectacle – genuinely worth seeing. The Buddha image’s eyes and feet are decorated with mother-of-pearl and carvings in the feet depict the ‘108’ characteristics of Buddha.
Emerald Buddha is 160 cm (5 ft and 4 inches) high, made of green jade.
The trip to Ayuththaya by bus and the return by river cruise is absolutely great. Thai people are very polite. As you enter a shop they will welcome you or greet you with the Buddhist tradition of bringing two hands together and when you leave too they again repeat it.
The country is clean and beautiful and the amazing thing in Bangkok is you will hardly see old people and all are young beautiful girls and boys everywhere in the city of Bangkok.
A must see country by Buddhists.
According to legend, the Emerald Buddha was created in India in 43 BC by the sculptor Nagasena in the city of Pataliputra (today Patna in the state of Bihar). The legends state that after remaining in Pataliputra for three hundred years, it was taken to Sri Lanka to save it from a civil war. In 457 CE, King Anuruth of Burma sent a mission to Ceylon to ask for Buddhist scriptures and the Emerald Buddha, in order to support Buddhism in his country. These requests were granted, but the ship lost its way in a storm during the return voyage and landed in Cambodia. When the Thais captured Angkor Wat, the Emerald Buddha moved to Ayutthaya, Kamphaeng Phet, Laos and finally to Chiang Rai, where the ruler of the city hid it. However, some art historians describe the Emerald Buddha as belonging to the Chiang Saen Style of the 15th Century AD, which would mean it is actually of Lannathai origin. The Emerald Buddha is adorned with garments made of gold. There are three different sets of gold clothing, which are changed by the King of Thailand in a ceremony at the changing of the seasons. The three sets of gold garments correspond to Thailand's hot season, rainy season, and cool season
Tuesday, July 22, 2008
Congratulations to Chamath Putha on the Occasion of His Convocation as a Consultant Doctor !
It is a great occasion for us to see Chamath Putha's convocation as a Consultant doctor. He is an inspiration to our family. He will be proceeding to Australia for his post graduate studies.
Congratulations, Chamath Putha !
Congratulations, Chamath Putha !
Sunday, June 29, 2008
Heshani duwa & Shanaka putha
We are delighted that Latha's sincere efforts to find a partner for Heshani duwa have worked out well today and here we are with Shanaka putha. Their chemistry has worked and have fallen in love. Being blessed to be together, they are planning to have their wedding in December this year.
Latha and I wholeheartedly congratulate and wish them all the best and good luck !
Saturday, June 21, 2008
Wednesday, June 18, 2008
Some Pictures Taken in Sri Lanka during Our Holiday
Latha is at Loku Aiya's courtyard at Anuradhapura. Next down is me at home.
Then follows our loving Ruchini duwa with her Ammi & Appachchi.
We met Mala Nangie, Rathnayake Mallie together with their daughters, Kavya and Kinki on our way to Anuradhapura . Also with them is Kumari Duwa
Finally, picture of Jayantha Mallie's Loku duwa, Upeksha Madumalee, at our home. I need to say, that she is an innocent girl who is trying to come up in life by studying very hard, living at Asokaramaya, a viilage passing the Twin Ponds in the Anuradhapura old town.
Then follows our loving Ruchini duwa with her Ammi & Appachchi.
We met Mala Nangie, Rathnayake Mallie together with their daughters, Kavya and Kinki on our way to Anuradhapura . Also with them is Kumari Duwa
Finally, picture of Jayantha Mallie's Loku duwa, Upeksha Madumalee, at our home. I need to say, that she is an innocent girl who is trying to come up in life by studying very hard, living at Asokaramaya, a viilage passing the Twin Ponds in the Anuradhapura old town.
Saturday, June 14, 2008
Sunday, June 1, 2008
Tuesday, May 20, 2008
Congratulations to Daesha Putha for Completing his Internship !
Having graduated as a MBBS doctor, Daesha putha has just completed his internship at the Ambilipitiya hospital in Sri Lanka.
Latha and I congratulate him for his great achievement and wish him all the best and good luck for his professional career as a doctor! He is an inspiration to our family. Congratulations, Daesha Putha !
Latha and I congratulate him for his great achievement and wish him all the best and good luck for his professional career as a doctor! He is an inspiration to our family. Congratulations, Daesha Putha !
In Memory of My Beloved Father and Mother !
On 26 May 2008, we commemorated the 8th death anniversary of our beloved father and mother with a Maha Sangeeka Alms Giving to Maha Sangha. Father and mother are the epitome of eternal love which we always cherish. With the merits invoked at the commemoration, may they attain the supreme Bliss of Nibbana !
Monday, May 19, 2008
Chuti Duwa, Rashanthi, is an Inspiration to Our Family !
Having started her primary education at Kadawatha Methodist School, she joined Viharamahadevi Balika College at Kiribathgoda, Sri Lanka, having won the 5th standard scholarship.
She entered the University of Moratuwa to do Earth Resources Engineering and is sitting for the final examination in May 2008. In addition to her studying engineering, she is doing CIMA too to qualify herself both in engineering and management as well.
She is an exceptionally smart girl who is born with an incredible courage to do anything she is entrusted and can manage everything by herself.
She entered the University of Moratuwa to do Earth Resources Engineering and is sitting for the final examination in May 2008. In addition to her studying engineering, she is doing CIMA too to qualify herself both in engineering and management as well.
She is an exceptionally smart girl who is born with an incredible courage to do anything she is entrusted and can manage everything by herself.
Her future is very bright and Latha and I congratulate her for her expeditions ! All the best and good luck, Chuti duwa !
Little Lindulee is walking now !
We are very much delighted to see our little angel, Lindulee, walking and playing with her Mama,Chandra and others. She has been trained to say 'Bye' and worship elders and the way she does it is absolutely facinating.
She will be 2 years by 15 August 2008, it is nice to see her seeing photo albums to find out whether she is there.
She is very obeidient and listens to her mother. If told not to do any thing bad, she sticks to it without fuss. Her Mom and Dad bring her up with love and care so that she would eventually be a loving and caring young lady when she is grown up.
Saturday, May 17, 2008
Withholding Tax [WHT] on Interest Earned from Fixed Deposits in Sri Lanka
During my holiday in Sri Lanka, I was able to have a conversation with one of our family friends working in Sri Lanka and she said that she has invested some money in one of the commercial banks in Sri Lanka and the bank is charging withholding tax at 10% from the interests earned from her fixed deposits. The bank has advised her verbally that according to the prevailing law, all those who have fixed deposits need to pay withholding tax at 10% from the interest they earn.
Nobody has apparently tried to find the veracity of this law or the practice of banks in terms of the law but has simply allowed the banks to recover tax unabatedly.
As a person who manages my investments very effectively, I need to clarify this malpractice by banks simply due to the sheer ignorance of poor customers. They also have no idea whether these taxes after recovery from their fixed deposits are being sent to the government coffer or not in view of the fact that we do not receive any such document from the banks.
The Commissioner General of Inland Revenue by his circular ref. 2007/1 dated 27.03.2007
has clearly stipulated the conditions and procedure of recovering Withholding Tax from depositors of Banks and Financial Institutions of Sri Lanka.
I need to emphasize if the customer has given a declaration to the bank in the format of the declaration published in the above circular, the recovery of WHT is as follows:
a) If the total interest accruing from assessable income within a year commencing from 1 April up to 31 March of the following year is less than Rs.300, 000.00, the customer should not pay any WHT.
b) If the total interest earned is more than Rs. 300,000.00 but less than 600,000.00, the customer is liable to pay WHT at 2 ½ % of such interest.
c) If the interest earned per annum is more than Rs. 600,000.00, then only the customer needs to pay WHT at 10% on the interest of the fixed deposit.
If the Interest earned by a joint account, only 50% needs to consider by the joint account holder for the calculation of interest earned.
Secondly, there are exemptions granted by the government, which also need to be verified by the customer before making his own declaration.
I further wish to append a letter I received from the Inland Revenue Commissioner in response to a query I made to him which is self explanatory.
ACT 4/22 07.04.2008
Mr. Jass Ranasinthe
Blair-Anderson Ltd.
P.O.Box 53827
Dubai, UAE
Dear Mr. Ranasinghe
Withholding tax (WHT) on Interest earned
I refer to your letter dated January 28, 2008, and wish to inform you the following.
(1) The income from interest is a scheduler tax and in a case of a person other than a company, the maximum rate applicable is 10%. In a case of an individual the tax deducted on deposits of money in banks or financial institutions (including government securities and corporate debt securities) is treated as final tax.
(2) The resident individual is entitled to a tax free allowance of Rs. 300,000 under normal circumstances. However, there was no lower limit when deducting WHT on interest by banks or financial institution. Hence the individual could not get the benefit of the tax free allowance on interest income. Further, the Rs. 300000/- is taxed at of tax is 5%. Considering the above facts, the policy decision was taken by the government, to adjust the scheduler scheme of WHT on interest income in order to provide the benefit of the tax free threshold and the lower rate slab of Rs. 300000/- at 5%.
As you have correctly pointed out the Budget announcement was to apply 5% on interest over and above Rs. 300000/- up to Rs. 600000/-
However, the bank and financial institutions are not in the position to deducts tax free allowance since they are only WHT agencies. Further, the tax free allowance is not only on interest income but on the total assessable income.
Therefore, the provision relating to the WHT has been incorporated to the Act, based on the budget proposals to provide the same effect without deducing tax free allowance.
Since the bank is not in the position to deduct part of the income, instead of deducting Rs. 300000/- and charging on the balance 5%, WHT is charged on the total interest income at 2.5% up to Rs. 600000/-. The proposal is if the interest income is less that Rs. 600000; deduct Rs. 300000/- and charge WHT at 5% on the balance Rs. 300000/-
Amendment is up to Rs. 600000/- charge WHT at 2.5%. (the result would be the same. i.e. WHT is Rs.15,000/-)
Therefore, the guideline issued by the Department which is referred to in your letter is based on the amendment to the provision of the Act.
However, please note that if your total income liable to tax does not exceed Rs. 300000/- or exceeds Rs. 300000/- but does not exceeds Rs. 600000/- you are kindly required to inform the bank not to deduct tax or deduct 5% from Rs 300000/- to Rs. 600000/-
I trust this would serve the purpose intended.
The delay in replying is very much regretted. (A copy of the amendment Act No. 10 of 2007 is attached. Please refer Section 133 of the Act)
Yours faithfully
D.G.P.W. Gunatilake
Deputy Commissioner (Secretariat)
Nobody has apparently tried to find the veracity of this law or the practice of banks in terms of the law but has simply allowed the banks to recover tax unabatedly.
As a person who manages my investments very effectively, I need to clarify this malpractice by banks simply due to the sheer ignorance of poor customers. They also have no idea whether these taxes after recovery from their fixed deposits are being sent to the government coffer or not in view of the fact that we do not receive any such document from the banks.
The Commissioner General of Inland Revenue by his circular ref. 2007/1 dated 27.03.2007
has clearly stipulated the conditions and procedure of recovering Withholding Tax from depositors of Banks and Financial Institutions of Sri Lanka.
I need to emphasize if the customer has given a declaration to the bank in the format of the declaration published in the above circular, the recovery of WHT is as follows:
a) If the total interest accruing from assessable income within a year commencing from 1 April up to 31 March of the following year is less than Rs.300, 000.00, the customer should not pay any WHT.
b) If the total interest earned is more than Rs. 300,000.00 but less than 600,000.00, the customer is liable to pay WHT at 2 ½ % of such interest.
c) If the interest earned per annum is more than Rs. 600,000.00, then only the customer needs to pay WHT at 10% on the interest of the fixed deposit.
If the Interest earned by a joint account, only 50% needs to consider by the joint account holder for the calculation of interest earned.
Secondly, there are exemptions granted by the government, which also need to be verified by the customer before making his own declaration.
I further wish to append a letter I received from the Inland Revenue Commissioner in response to a query I made to him which is self explanatory.
ACT 4/22 07.04.2008
Mr. Jass Ranasinthe
Blair-Anderson Ltd.
P.O.Box 53827
Dubai, UAE
Dear Mr. Ranasinghe
Withholding tax (WHT) on Interest earned
I refer to your letter dated January 28, 2008, and wish to inform you the following.
(1) The income from interest is a scheduler tax and in a case of a person other than a company, the maximum rate applicable is 10%. In a case of an individual the tax deducted on deposits of money in banks or financial institutions (including government securities and corporate debt securities) is treated as final tax.
(2) The resident individual is entitled to a tax free allowance of Rs. 300,000 under normal circumstances. However, there was no lower limit when deducting WHT on interest by banks or financial institution. Hence the individual could not get the benefit of the tax free allowance on interest income. Further, the Rs. 300000/- is taxed at of tax is 5%. Considering the above facts, the policy decision was taken by the government, to adjust the scheduler scheme of WHT on interest income in order to provide the benefit of the tax free threshold and the lower rate slab of Rs. 300000/- at 5%.
As you have correctly pointed out the Budget announcement was to apply 5% on interest over and above Rs. 300000/- up to Rs. 600000/-
However, the bank and financial institutions are not in the position to deducts tax free allowance since they are only WHT agencies. Further, the tax free allowance is not only on interest income but on the total assessable income.
Therefore, the provision relating to the WHT has been incorporated to the Act, based on the budget proposals to provide the same effect without deducing tax free allowance.
Since the bank is not in the position to deduct part of the income, instead of deducting Rs. 300000/- and charging on the balance 5%, WHT is charged on the total interest income at 2.5% up to Rs. 600000/-. The proposal is if the interest income is less that Rs. 600000; deduct Rs. 300000/- and charge WHT at 5% on the balance Rs. 300000/-
Amendment is up to Rs. 600000/- charge WHT at 2.5%. (the result would be the same. i.e. WHT is Rs.15,000/-)
Therefore, the guideline issued by the Department which is referred to in your letter is based on the amendment to the provision of the Act.
However, please note that if your total income liable to tax does not exceed Rs. 300000/- or exceeds Rs. 300000/- but does not exceeds Rs. 600000/- you are kindly required to inform the bank not to deduct tax or deduct 5% from Rs 300000/- to Rs. 600000/-
I trust this would serve the purpose intended.
The delay in replying is very much regretted. (A copy of the amendment Act No. 10 of 2007 is attached. Please refer Section 133 of the Act)
Yours faithfully
D.G.P.W. Gunatilake
Deputy Commissioner (Secretariat)
Monday, May 12, 2008
In the wilderness of Sri Lanka !
Latha and I went on a short holiday to Sri Lanka with the intention of relieving ourselves from the monotonous life in Dubai and the work pressure. On the other hand, being with our families in Sri Lanka itself is refreshing ourselves. Sharing the joy of Sinhala New Year is absolutely tremendous with our family members and friends in addition to staying at home in the wilderness listening to some music and watching TV.
We landed in Sri Lanka on 10 April 2008 and started cleaning and repairing the home as usual despite my cousin brother next door, Gamini Mallie, had tried his best to renovate and clean the house to a reasonable level for our stay. To distribute the gifts, Latha had to spend a considerable time, yet we know that our family members are eagerly waiting for something from us.
Particularly, we gave a gift of brand new laptop computer to Chamath putha who is planning to proceed to Australia for his post graduate studies to be a consultant doctor. Another brand new desktop was brought home for Hemantha putha. How fortunate we are to have sons and daughters of the calibre of Chamath putha, Loku duwa, podi duwa, Chamika putha and Lakshan putha, Daesha putha, Hemantha putha, Anuradha putha, Prabath putha, Ruchini duwa, Titi duwa, etc. in our family.
We landed in Sri Lanka on 10 April 2008 and started cleaning and repairing the home as usual despite my cousin brother next door, Gamini Mallie, had tried his best to renovate and clean the house to a reasonable level for our stay. To distribute the gifts, Latha had to spend a considerable time, yet we know that our family members are eagerly waiting for something from us.
Particularly, we gave a gift of brand new laptop computer to Chamath putha who is planning to proceed to Australia for his post graduate studies to be a consultant doctor. Another brand new desktop was brought home for Hemantha putha. How fortunate we are to have sons and daughters of the calibre of Chamath putha, Loku duwa, podi duwa, Chamika putha and Lakshan putha, Daesha putha, Hemantha putha, Anuradha putha, Prabath putha, Ruchini duwa, Titi duwa, etc. in our family.
Loku duwa, of course, had been very busy preparing herself for her post graduate medical exam in addition to her daily routine at Ward No.33 at the General Hospital and could not find time to spend the time with us except the last couple of days of our stay in Sri Lanka.
Hemantha putha and Gamini Mallie extended a tremendous help to me to organize the alms giving in memory of my beloved parents. We would have been in big trouble unless Hemantha putha creped into the ceiling to repair the leaks in the heavy rain which very badly flooded our home.
We were delighted with the visit of Anuradha putha together with his brand new bride, Chamila, and we are very happy for him to have an elegant young lady like Chamila duwa. She is a girl of irresistible charm and unique simplicity. We love her very much and welcome to our family.
Hemantha putha and Gamini Mallie extended a tremendous help to me to organize the alms giving in memory of my beloved parents. We would have been in big trouble unless Hemantha putha creped into the ceiling to repair the leaks in the heavy rain which very badly flooded our home.
We were delighted with the visit of Anuradha putha together with his brand new bride, Chamila, and we are very happy for him to have an elegant young lady like Chamila duwa. She is a girl of irresistible charm and unique simplicity. We love her very much and welcome to our family.
Latha’s father still can walk a bit despite being 92 years old simply due to the tremendous love and care of Palitha mallie, Rajini nangie and kids. We owe them a lot for their invaluable sacrifice towards the father.
We had a one day trip to Hatharaliyadda, Thumpane, via Kurunegala with akka and loku aiya to pay a visit to Sriyanthi Nangie's sister. It is a beautiful area of hills and valleys with a very mild climate as shown in the picture above.
Latha had a hectic time, no doubt, all these days, yet we can turn back and say its a wonderful holiday.
Latha had a hectic time, no doubt, all these days, yet we can turn back and say its a wonderful holiday.
Sunday, April 6, 2008
Saturday, April 5, 2008
Friday, April 4, 2008
Our holiday in Switzerland with Ravi putha, Hans, Daniel and Samanmalee duwa is absolutely great. We will never forget the aroma of Swiss delicacies, delicious dinner together the wines of various makes coupled with the warmth and love towards us. Taking us to see the country side and the mountains of Shilthron and Manhatton deservers a very big thank. Food of Hans also needs a special thank. Thanks for all that. It means a lot to us.
Wednesday, April 2, 2008
My Father & Mother
My father and mother gave us the roots and wings; roots are the family and personal characteristics and wings are the way we were brought up for us to live in this world as rational human beings without being a burden to the society.
Tuesday, April 1, 2008
Agenda for Retirement
It is absolutely exciting to feel the ecstasy of being free from the shackles of being employed for remunerations as I have done for the last 38 years for various employers both in Sri Lanka and abroad. I have made up my mind to get back home for good in two years in 2010 having worked for almost 16 years abroad and having been economically independent with no any financial liabilities to anyone. Time has now come for me to call it a day.
I need to do my home work to draw the agenda as to how I am going to spend the rest of my life taking into considerations all what I have learned all these days in my life. I need to see the world intelligently in a brand new perspective extracting the essence of experience and the integrity I have developed in my character as a matured man.
One thing I am going to engage myself is my hobby of making classic and elegant home videos.
I need to do my home work to draw the agenda as to how I am going to spend the rest of my life taking into considerations all what I have learned all these days in my life. I need to see the world intelligently in a brand new perspective extracting the essence of experience and the integrity I have developed in my character as a matured man.
One thing I am going to engage myself is my hobby of making classic and elegant home videos.
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