News
UNDP and South Centre organise capacity building workshop on taxation for Lankan Govt
The United Nations Development Programme (UNDP), through its Tax for SDGs Initiative, and the South Centre, Switzerland jointly organised a two-day capacity-building workshop on “Taxation of the Digitalised Economy” for nearly 100 officials from the Fiscal Policy Department (FPD), Inland Revenue Department (IRD), the Ministry of Finance and key private sector actors in the digital space in Sri Lanka.
The UNDP Tax for SDGs Initiative in collaboration with the South Centre’s Tax Initiative support developing countries in increasing Domestic Resource Mobilization (DRM) and achieving the Sustainable Development Goals. Domestically mobilized revenues, which form the bedrock of both development and climate finance, have been severely impacted even as they have become even more important for the recovery efforts and for reviving investments in economic and social development. In this regard, the workshop was organized at an opportune moment as Sri Lanka embarks on a path to economic recovery and course correction, particularly addressing structural issues pertaining to government revenue. Globally too, countries are increasingly focusing efforts to strengthen domestic resource mobilization as they chart up ways to manage the severe dent caused by multiple crises.
The workshop provided a unique opportunity for stakeholders to exchange and interact with their peers and international experts on the tax challenges arising from the digitalized economy. More specifically, the workshop focused on:
(1) policy options for taxing the digitalized economy, especially Multinational Enterprises (MNEs) supplying digital services such as online advertising and platform intermediation
(2) designing a minimum effective corporate income tax
(3) presenting ongoing discussions at the global level on taxing the digitalized economy
(4) obtaining evidence and perspectives of Sri Lanka on taxing the digitalized economy
(5) creating an inclusive platform for peer learning and exchange through the knowledge & experiences of the workshop participants
The workshop commenced with opening remarks by Ranjith S. Hapuarachchi, Commissioner General, IRD. He highlighted the need for tax administration to augment revenue collection in times of the ongoing fiscal challenges in Sri Lanka and expressed hope that the workshop would be able to lay the necessary roadmap and suggest measures for the Sri Lankan administration to tax income of digital companies that is sourced from Sri Lanka.
The highly interactive workshop delivered by Sudarshan Kasturirangan, Regional Programme Specialist, Asia and the Pacific, UNDP, Abdul Muheet Chowdhary, Senior Programme Officer and Kuldeep Sharma, Research Consultant – Tax, South Centre, commenced with an examination of the domestic measures being undertaken in various countries such as Digital Services Tax (DST), Equalisation Levy (EL) and Significant Economic Presence (SEP). This was followed by an in-depth examination of the treaty-based solutions available, namely Article 12B of the UN Model Double Tax Convention (UN DTC) which provides a solution for taxing income from Automated Digital Services (ADS). ADS especially include services such as online advertising, search engines, intermediation platforms, social media platforms, online gaming and cloud computing.
The workshop also covered treaty-based solutions under the UN DTC for taxing income from payments for the use or the right to use computer software under Article 12 (Royalties). This was combined with a session on Article 12A (Fees for Technical Services) which covers income from managerial, technical and consultancy services and are often delivered online. There was a considerable amount of deliberations on the ongoing work in these areas at the UN Tax Committee and its significance for developing economies like Sri Lanka. Central to the discussion was also on the existing treaty framework in Sri Lanka concerning taxing royalties and fees for technical services.
Speaking to the success of the event, N.M.M. Mifly, Deputy Commissioner General, IRD concluded the workshop by stating that the insights gained would empower the participants in enhancing their understanding of the ever-evolving tax landscape and the core rules regarding taxation of the digitalised economy that have been formulated recently and those under the process of formulation.
In particular, Mifly appreciated the UN Tax Committee, UNDP and the South Centre for providing coherent guidance and options to the Government of Sri Lanka and developing countries in general, and requested that more such workshops be held in the future.
The successful conclusion of the workshop under the UNDP Tax for SDGs Initiative and the South Centre laid a firm foundation for the series of joint engagements planned between the two organizations to support the Government of Sri Lanka and deepen collaboration in this field. These include a review of Sri Lanka’s tax treaty network, the design of a Model Tax Treaty for the country and capacity building on tax treaty negotiation. Technical meetings with the stakeholders will be organized in the coming months to discuss the progress made and the challenges faced during implementation.
The Sri Lanka Navy successfully recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.
The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th September, from a depth of approximately 80 feet. It was
subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation immediately following the incident focused on search and rescue. A joint effort involving the Navy, Air Force, Police, and local fishermen from Angulana
resulted in the rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.
Following the search and rescue phase, specialized Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to
strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilized specialized technical know-how and equipment to raise the vessel in stages.
Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.
By Shamindra Ferdinando
The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.
Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.
The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.
Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.
Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.
Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.
The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.
Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.
The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.
The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.
SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.
Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.
The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.
The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.
GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.
Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.
(SF)
Fast Attack Craft P 4447 recovered in successful salvage operation
Showers above 100 mm are likely at some places in the Western, Central, Sabaragamuwa, Southern, North-central and North-western provinces
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Tharanga wins Ultimate Javelin title
CIABOC member’s appointment: Controversy over Speaker under probe heading selection process
GMOA: Countrywide cadre revision not done since 2015
‘Dates have the highest sugar content to fight Coronavirus’
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