When properties are valued without proper knowledge and expertise, it creates significant issues for the Government in accurately assessing and collecting taxes which results in substantial revenue losses and inefficiencies, said Deputy Minister of Industries and Entrepreneurship Development, Chathuranga Abeysinghe.
He was speaking at the inaugural convocation ceremony of the collaborative Professional Diploma in Automotive and Machinery Valuation conducted by the Institute of Automotive and Machinery Valuers Lanka at the BMICH last week.
He outlined the significant impact of unregulated valuation practices, particularly in assets valuation, on the nation’s economy. “When properties are valued without proper knowledge and expertise, it creates significant issues for the government in accurately assessing and collecting taxes. This results in substantial revenue losses and inefficiencies,” he said.
“This country has faced immense challenges because no policies were followed in key sectors. As a government, we accepted the challenge of managing these issues despite the lack of policies. It’s not an easy task.”
He underscored that the financial sector also suffers from similar shortcomings, with no proper financial mechanisms in place to address gaps, especially affecting SMEs. “There is a clear gap, and I have been voicing these concerns consistently. These issues, if left unaddressed, continue to hinder progress for the Government and the public.”
President, Institute of Automotive and Machinery Valuers (IAMV), Isuru Senaratne said, “When compared to other countries, Sri Lanka exhibits a unique trend where vehicle market values often appreciate significantly over time, exceeding their original import costs.
‘’Among the factors affecting vehicle prices, the influence of parties not directly linked to the financial sector is substantial.’’
‘’As a result, consumers have faced severe difficulties in recent times due to assets being overvalued beyond their actual worth. This has led to inflated valuations in financial records, ultimately causing financial losses within the system.’’
‘’’The negative impact of improper and unstandardized valuation practices on the financial system and the overall economy is undeniable.’’
‘’To minimise such issues in the future, it is vital for all stakeholders in the sector to collaborate effectively. Vehicle and machinery valuers play a critical role in this effort by ensuring accurate and standardized valuations, which is a significant service to the nation and the economy,’’ he said.
