Sri Lanka is ready to tax the digital services supplied by non-Sri Lankans from October 1. This was legalised by the certification of VAT (amendment) Act No. 4 of 2025. Inland Revenue Department said in a press release that procedures for registration, payment and compliance would be specified by the Commissioner General in due course….
China’s trade surplus with Sri Lanka surged to an all-time high of over US$4 billion (Rs. 1.195 trillion) in 2024, nearly doubling from the previous year and highlighting the growing imbalance in bilateral commerce. According to official data, Sri Lanka exported just US$251.91 million worth of goods to China in 2024 — a 2% decline…
Sri Lanka’s fragile economy could face further strain following the United States’ recent tariff hikes, warns Fitch Ratings. The global credit rating agency stated that countries with low external buffers and high debt burdens, like Sri Lanka, are particularly vulnerable to the ripple effects of the escalating US trade war. Currently rated CCC+, Sri Lanka…
The prices of liquid milk and yoghurt made from locally sourced fresh milk are expected to decrease following the Sri Lankan government’s recent decision to exempt these products from Value Added Tax (VAT). This tax relief follows the enactment of the Value Added Tax (Amendment) Act No. 04 of 2025, which received certification on 11…
President Anura Kumara Dissanayake announced a major expansion of the Aswesuma welfare scheme, pledging to include an additional 400,000 individuals under the program. The move is part of the government’s broader effort to strengthen the country’s social safety nets and extend support to low-income and vulnerable groups. The announcement follows a Cabinet decision on March…
Sri Lanka’s economy expanded by 5.0% in 2024, marking a strong recovery from the 2.3% contraction in 2023, according to the World Food Programme’s March 2025 Market Monitor. The growth was largely driven by the industrial sector, which surged to 11% growth, while services saw modest expansion. However, agriculture lagged, posting a 0.2% annual decline…
Ajith Perakum Jayasinghe What is an energy hub? An energy hub is a strategically located site for storing, refining, and distributing energy resources such as petroleum, natural gas, and electricity. According to the International Energy Agency (IEA), energy hubs are “key nodes that enable flexible energy flows, ensuring balance and stability across interconnected systems.” Globally,…
According to a report published by the state-owned Silumina newspaper on April 6, the Sri Lankan government is considering the possibility of imposing taxes on tuition classes. The government, which recently increased salaries for public sector employees, is now focusing heavily on boosting tax revenue. Prof. Wasantha Athukorala, Director of the Postgraduate Institute of Humanities…
The Bank of Ceylon (BoC) has announced plans to issue 100 million debentures valued at Rs. 100 each, totaling Rs. 10 billion. The bank also intends to issue an additional 50 million debentures worth Rs. 5 billion if there is high investor demand, bringing the potential total to Rs. 15 billion. Fitch Ratings has assigned…
In a letter dated March 24, the Chairman of the Ceylon Electricity Board (CEB), Dr. Tilak Siyambalapitiya, informed Deputy Minister of Economic Development Prof. Anil Jayantha Fernando of an urgent electricity tariff hike in accordance with the guidelines issued by the Public Utilities Commission of Sri Lanka (PUCSL) in 2024, Anidda newspaper reported. Copies of…
