Based on work done on electronic trading in ASEAN and extrapolation from the online freelancing research, I contributed some thoughts on budget proposals to create a government-run platform to collect taxes. That has been picked up in subsequent articles. In the face of government highhandedness, global e-commerce giants have in the past opted not to enter Sri Lanka, and experts such as LIRNEasia Chairman Professor Rohan Samarajiva have expressed concerns that new interference would lead to those operating in Sri Lanka to leave the country as well. However, some platforms such as Airbnb have a history of collecting taxation from customers and providing them to governments, if requested. Officials admitted that many budget accommodation units are not eligible to pay taxes, which would require amendments to existing legislation.
The 2017 Budget presented by the Minister of Finance of the Government of Sri Lanka proposed provision of “free Tabs for almost 175,000 students who enter the Advanced Level (AL) classes and around 28,000 A/L teachers from 2017.” LKR 5,000 million was allocated for this purpose. Given the fact that LIRNEasia had just completed a systematic review on ICTs in the classroom and had conducted an event to present the research to decision makers, we asked Kagnarith Chea, who participated in a related event to react to the government proposals. Kagnarith is . .
The Sri Lanka Association for the Advancement of Science (SLAAS) is the primary “learned society” for Sri Lankan academics. It’s a rather staid outfit where I think you need multiple nominees to support your application to join and they reject papers if they’re not in the correct font (I may be exaggerating a little because this is based on my memories from the 1980s). Anyway, Sriganesh Lokanathan, Team Leader – Big Data Research at LIRNEasia had been asked by the University of Sri Jayewardenepura to pull together a 60 mt panel discussion on big data for development. He had got an excellent panel together, Ruvan Weerasinghe from University of Colombo/Informatics Institute of Technology, Shehan Perera from University of Moratuwa, Srinath Perera from WSO2 and himself. I moderated the panel.
Politicians and government officials like to sing the praises of MSMEs saying they create most of the jobs and so on. They create banks, databases, and various schemes to support them. We too believe that MSME are important. To the extent micro enterprises become small enterprises; small enterprises become medium and so on, we think it’s good for society. Our Research Fellow Vigneswara Ilavarasan (Associate Professor at IIT Delhi) has been working on MSMEs for a long time.
The evidence is strong about positive impacts on livelihoods from simply the connectivity enabled by existence of mobile networks in rural areas. With regard to information services provided over those networks, by the government or by the private sector, the evidence is not as clear. It’s not that the evidence shows no positive impact, but that the research has not been able to capture the evidence. The news releases describing the findings in Sinhala Tamil English
Our intention was to introduce the Digital Dividends report of the World Bank and disseminate related research conducted by LIRNEasia. We made the headlines in two newspapers but the focus was the controversy around excessive taxes more than on the research. But I was happy there was at least one quotation that referred to the Systematic Review research. “Airbnb has been in Sri Lanka and they have been in discussion with the Government about collecting taxes and giving it to the Government. Now that is a model that can work, but the centralised platform where everybody will have to go to some kind of .
The leading English language weekly, The Sunday Times, has carried a report on some of LIRNEasia’s work on inclusive information societies. Based on a nationally representative survey, LIRNEasia estimates, there could be 17,000 to 22,000 freelancers in Sri Lanka registered with multiple platforms and selling their skills all around the world. Fiverr, Freelancer and Upwork are the popular platforms used by Sri Lankan youth with Fiverr having the most number of registered workers, LIRNEasia said adding that the research was undertaken to understand the enabling factors and challenges in adopting to work on online freelancing platforms. Typical freelance “jobs” that are outsourced through platforms include graphic design, data entry, proofreading, translation, copyediting, market research, programming, data verification, etc. According to the survey, 26 per cent of the Sri Lankans between the age group 16 to 40 are aware of online freelancing and among those who aware 9 per cent expressed interest in working on online freelancing jobs.
As a civic duty more than as the more mundane CSR, LIRNEasia has been assisting the Elections Commission on Sri Lanka since 2015 March by donating intellectual work on various aspects of improving the functioning of the electoral system, including a Constitutional changes and the working through of a strategic plan. Thus when I was invited to present the Indian Constitution Day Lecture at the University of Colombo, representation and stability was the topic that I picked. The lecture is on Friday, 25 November, 2016 at 5.00 p.m.
So the Daily Mirror, the leading English language daily, carried my comments on the illogical tax proposals. “Around 2010, the Government considered the complexity of taxes affecting the telecommunication sector and exempted telecom from the Value Added Tax. Instead a twenty percent tax was imposed for telecommunication which was remitted to the Government” said Former Director General of the Telecommunication Regulatory Commission and Telecommunication Expert Prof. Rohan Samarajeeva. “The previous Government also considered the data issue as separate from voice and value added services.
Myanmar is ranked 140th in the ITU’s ICT Development Index, just 0.16 away from India, which is ranked 138th. It is now ahead of all South Asian countries, except Maldives (86th), Sri Lanka (116th), Bhutan (117th) and India (138th). It is no longer the lowest ranking country within the ASEAN; Lao PDR is ranked 144th. Sri Lanka is running in place.
Following the online posting of my articles on the government’s 2017 Budget proposals affecting the ICT sector a rich discussion occurred over Twitter, which included participation and fact gathering by one of Sri Lanka’s leading journalists, Namini Wijedasa who writes in the highest circulation English newspaper. Thanks mostly to a valiant social media spokesperson from the Ministry of Public Enterprise Development who tried, to the best of his ability, to defend the indefensible. Examples below. Lot more Tweets. @Nimilamalee @samarajiva @groundviews 2013-2014 saw an increase of 1.
“The digital economy will empower our nation – through providing affordable and secure Internet connectivity to every citizen in any part of Sri Lanka, removing barriers for cross-border international trade.” The above quotation from the Prime Minister’s Economic Policy Statement in Parliament on 27 October 2016 suggests the government sees ICTs playing a vital role in the country’s progress. Sri Lanka has been a leader in ICTs in the region. The Prime Minister gave enthusiastic leadership to the e Sri Lanka initiative, which when launched was a pioneering effort. It is known that he played a valuable role in connecting Sri Lanka to the Internet in the 1990s.
As can be seen, the language used by Sujata Gamage in her op ed on the education proposal in the 2017 Budget Speech was very nuanced and academic. But the problem was that politicians tend not to read to the end, choosing to form their opinion from the headline. In this instance, the headline was “Can tabs do what PCs or bricks could not do for education?” But looking at that headline, I do not see anything near the kind of attack common in many of mine. It after all ends with a question mark.
The legislation creating the Public Utilities Commission and the Telecom Regulatory Commission specifically provide for the regulatory bodies to have their own funds. The Minister of Finance in the 2017 Budget has announced he intends to expropriate the money in the funds and give it out on request. My response in today’s Daily FT: It is customary for independent, sector-specific regulatory agencies to have a separate fund. The agency is operated with fees and other payments from the entities that it regulates that go into this fund. The principal rationale is insulation from pressure that could be exerted by the Government which could use disbursements from the consolidated fund as a carrot or a stick.
The Prime Minister of Sri Lanka is in charge of national policies and economic affairs. The Minister of Finance is in charge of finance, the money the government raises and the money it spends. As a result, the Prime Minister presents an economic policy statement before the budget is read. So it was with some surprise that I saw many policy proposals that did not have direct revenue/expenditure implications in the 2017 Budget, such as extension of the duration of visas issued to spouses of Sri Lankan citizens. The digital commerce proposal is also a policy proposal, but given the objective of ensuring the collection of relevant taxes, one could see a rationale for it being in the Budget Speech.
The Tamil mediasphere in Sri Lanka has been over-determined by the political. Now that we’re reverting to a more normal country, it’s time for economic issues to be covered. A group of volunteers including LIRNEasia’s Suthaharan Perampalan assembled a group of eager Tamil media personnel for training program today. I was one of the speakers. Here are the slides I prepared but was not able to use because the projector went on the blink.