DailyMirror.lk:
The country lost Rs. 29 billion in revenue by giving tax concessions to Shangri La Ltd and Catic Ltd when they purchased the premises of the former Army Headquarters, the UNP alleged in Parliament yesterday.
UNP MP Ravi Karunanayake, who moved an adjournment motion on the issue, alleged that the country had lost the said amount. He has stated in his adjournment motion: “We have been informed that the receipts of the sales proceeds has not been disclosed as to as to where it has been posted.” Mr. Karunanayake questioned as to whether there had been a change of policy as to where the money had been credited. He also questioned as to whether taxes had been paid.
UNP National List MP Dr. Harsha De Silva said the proceeds of the sales were not shown in the government revenue and sales accounts for the first quarter.
Lakshman Yapa Abeywardene, the Deputy Minister of Economic Development, who responded, said the proceeds from the transactions would be shown in the state revenue and expenditure account of 2011. However, he said, it was not necessary to specify the revenue sources in the account.
He also explained that the government was compelled to move away from the usual procedure to ensure that the country achieved the set targets in tourism. He said the country targetted attracting 2.5 million tourists by year 2016. “We need several seven star hotels to achieve these targets,” he said.
He said concessions had to be given to investors whom the country needed in order to fulfil the government’s economic goals. Mr. Abeywardene said the transactions had been carried out in a transparent manner and tabled several details regarding them.