News
VAT implementation from January 1, 2024, threatens children’s nutrition and agriculture, warns SJB MP and COPF Chairman
By Saman Indrajith
Dr. Harsha de Silva, Samagi Jana Balawegaya (SJB) MP and Chairman of the Committee on Public Finance (COPF), speaking in Parliament yesterday, expressed concern over the impending VAT application and its potential negative impact.
Dr. de Silva revealed that the COPF had urged the Ministry of Finance to reconsider taxing high-protein foods tailored for children, particularly those produced using local grains and agricultural inputs. He emphasised the adverse effect such taxation could have on children’s nutrition and the agricultural sectors.
“In response, they assured us of reviewing this matter. With rising child malnutrition, it’s perplexing why we would tax high-protein foods targeted at children. This move will also impact farmers, taxing their equipment, and fertiliser, starting January 1. Additionally, diesel tax will escalate on the same day. COPF has urged the Ministry to reconsider these aspects, too,” he stated.
Dr. de Silva also highlighted the imposition of an 18% VAT on medical equipment by the government.
“The Ministry claims the tax affects only equipment in private hospitals, stating that state hospitals are covered entirely by the government. However, it’s widely known that private hospitals cater to people from all social strata. Most state hospitals no longer conduct medical tests, instead redirecting patients to the private sector. Consequently, the costs of these tests will surge significantly,” he added.
Further, he expressed concern over the taxation of ambulances and advocated for VAT exemptions on medical, agricultural, and children’s nutrition-related goods.
Echoing this sentiment, Lakshman Kirielle, SJM MP and Chief Opposition Whip, highlighted the VAT’s substantial impact on the cost of living. He underscored a 15% drop in exports in October and criticised increased taxation as an inadequate solution to the balance of payments crisis.
“Without a concrete strategy to bolster exports, the government’s approach seems punitive,” Kirielle remarked.
News
USS Canberra departs Colombo
USS Canberra of the United States Navy departed the island on 14 Jun 26, following a successful replenishment port call. The Sri Lanka Navy extended a traditional naval farewell to the departing vessel at the Port of Colombo.
During the ship’s stay, the Commanding Officer of USS Canberra called on the Commander Western Naval Area at the Western Naval Command Headquarters
News
The use of local organic Agricultural products in the Bakery Industry will strengthen both local farmers and the tourism industry – PM
Prime Minister Dr. Harini Amarasuriya stated that the use of local organic agricultural products in bakery production would provide significant support to both local farmers and the growth of the tourism industry.
The Prime Minister made these remarks while addressing the Annual meeting of the All Ceylon Bakery Owners’ Association, held at the Shangri-La Hotel, Colombo, on Friday (12 June).
The Prime Minister stated,
“At a decisive moment when the country is moving towards a new phase of economic transformation, I believe that the bakery industry has the potential to become a key driver of the national economy, rather than remaining limited to flour-based products alone.
The food production must be mainly considered the quality and safety of food. Therefore, instead of focusing solely on taste, we should introduce nutritious and healthy products to the market that are free from artificial flavourings and colourings.
By using ingredients such as rice flour, finger millet, foxtail millet, green gram, and indigenous tubers to create value-added products, the bakery industry has the opportunity to capitalize on the growing global trend towards health-conscious diets.
The use of local organic agricultural products in food prepared for foreign tourists will provide substantial benefits to local farmers while also contributing to the growth of the tourism industry. At the same time, the government remains committed to strengthening local entrepreneurs by reducing challenges related to the importation of raw materials, providing concessionary loans for new technologies, and offering the technical assistance required to meet international standards.
The government has already launched programmes through the Ministry of Industries to provide the necessary training and market linkages to help small and medium-scale bakery owners develop and expand their businesses”.
The occasion was attended by the Deputy Minister of Industries Chathuranga Abeysinghe, President of the All Ceylon Bakery Owners’ Association N.K. Jayawardana, and a number of members of the Association were also present at the event.

Prime Minister’s Media Division
News
Prime Minister meets with UNICEF delegation
Prime Minister Dr. Harini Amarasuriya met with a delegation from the UNICEF on Friday (June 12) at Temple Trees to discuss ongoing efforts to support the recovery of the education sector following the impact of Cyclone Ditwah.
Discussions focused on the implementation of activities outlined in the report titled “Cyclone Ditwah Education Emergency Response Plan: Phase 1 Progress Updates (January–April 2026).” The meeting provided an opportunity to review the progress achieved during the initial phase of the response and to discuss future interventions aimed at supporting children and schools affected by the disaster.
The Prime Minister and the UNICEF delegation also exchanged views on strengthening collaboration to ensure the continuity of education and the well-being of affected children.
The UNICEF delegation included Emma Brigham, UNICEF Representative, Begona Arellano, Deputy Representative, and other UNICEF officials.

(Prime Minister’s Media Division)
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