Parliament Urged to Modernize Local Government Revenue and Powers 🏛️

• Local Authority Funding Crisis: ITAK MP Shanakiyan Rasamanickam warned Parliament that local councils currently fund 20% to 40% of their salary expenditure from self-generated revenue, with expectations to cover 100% by 2029. He refuted claims that this is an IMF requirement. • Outdated Revenue Mechanisms: Local councils operate on outdated fees, including license fees of Rs. 5,000–6,000 and fines as low as Rs. 100–500. Proposals were made to periodically review rates, permit charges, and fines, alongside granting state legal assistance to recover unpaid taxes from major defaulters. • Administrative & Legal Bottlenecks: - Unapproved project proposals under the Local Loans and Development Fund (LLDF) are stalling revenue-generating opportunities. - By-laws created by Municipal Councils since 2018 remain unapproved due to non-functioning Provincial Councils since 2017. A legal approval mechanism was urged. - Boundary disputes were highlighted, including the Kattankudy Urban Council collecting rates in the Batticaloa Municipal Council territory (Manchanthoduwai ward). - Concerns were raised regarding non-elected Prajashakthi structures prioritizing Local Government projects over elected representatives. • Transparency Requests: Requested disclosure of central and provincial development allocations for Northern and Eastern districts for 2025–2026, alongside vehicle and machinery distributions over the past 5 years.